Document background
The Commercial Real Estate Loan Term Sheet is a crucial preliminary document used in Hong Kong's commercial property financing transactions. It is typically issued after initial credit approval but before the preparation of full loan documentation, serving to document the commercial agreement between the lender and borrower on key terms of the proposed facility. The document reflects Hong Kong's sophisticated banking and real estate sectors, incorporating local regulatory requirements and market practices. It covers essential elements including facility terms, security structure, key conditions, and covenants, forming the basis for lawyers to prepare the detailed loan documentation. The term sheet is non-binding except for certain provisions such as confidentiality and governing law, but represents a moral commitment between the parties to proceed on the stated terms.
