Document background
The Letter Of Intent Commercial (Real Estate) is a crucial preliminary document used in Swiss commercial property transactions to establish the foundation for negotiations and future agreements. It is typically employed when parties have reached initial understanding on key commercial terms but need to formalize their intentions before proceeding with detailed due diligence and final contract negotiations. The document reflects Swiss legal requirements and commercial practices, incorporating federal and cantonal property laws, and typically includes provisions for confidentiality, exclusivity, and basic transaction terms. While mostly non-binding, certain provisions can create legal obligations under Swiss law, making it essential to carefully draft the document to reflect the parties' intentions accurately. This type of LOI is particularly important in complex commercial real estate transactions where significant due diligence and multiple stakeholders are involved.
