Document background
A Letter Of Intent To Purchase Commercial (Real Estate) is a crucial preliminary step in commercial property transactions in New Zealand. It is typically used when a prospective buyer has identified a commercial property of interest and wishes to formally communicate their serious intention to purchase, while maintaining flexibility before entering into a binding agreement. The document outlines key commercial terms including the proposed purchase price, due diligence requirements, timeline, and any specific conditions. While generally non-binding, it helps establish the framework for negotiations and demonstrates commitment to the transaction. This document is particularly important in New Zealand's commercial property market where it helps facilitate clear communication between parties and sets expectations for the subsequent formal agreement. It typically precedes the more detailed Sale and Purchase Agreement and may be required by financial institutions or other stakeholders as evidence of the parties' intentions.
