Letter of Intent (Commercial Property Purchase and Sale)

A Letter of Intent (Commercial Property Purchase and Sale) under USA law serves as a preliminary agreement between parties involved in a potential commercial property transaction. It outlines the mutual intention to go ahead with the purchase and sale of a commercial property, defining the key terms and conditions of the impending deal. This legal template covers various important aspects, including the identities and contact details of the buyer and seller, a comprehensive property description, purchase price, deposit amount, financing terms, contingencies, and any specific terms crucial to the transaction.

The letter typically establishes a framework for negotiations and provides a roadmap for the subsequent formal purchase and sale agreement. It sets forth the buyer's serious intent to proceed with due diligence, such as property inspections, verification of title, and financing arrangements. This document also assists in minimizing misunderstandings between the parties by establishing preliminary understandings and expectations.

While the Letter of Intent is not a legally binding contract, it signifies good faith and often includes provisions that bind both parties to confidentiality and exclusivity during the negotiation process. It may also cover the allocation of costs associated with certain due diligence activities and indicate the anticipated timing for executing the final agreement. Moreover, the letter may include a provision specifying the recourse available to a party in case of a breach of its terms.

This legal template is designed to provide a solid foundation for parties involved in a commercial property purchase and sale, helping them navigate negotiations and move closer towards a more formal and binding agreement. As with any legal document, parties should consult qualified professionals and adapt the template to their specific requirements and applicable state laws.