Document background
A Commercial Real Estate Letter Of Intent To Purchase is a critical preliminary document used in the United States real estate market to initiate the formal process of acquiring commercial property. It serves as a roadmap for the transaction by outlining key terms, conditions, and expectations between the buyer and seller before proceeding to a binding purchase agreement. This document typically includes essential elements such as property description, purchase price, earnest money requirements, due diligence period, and closing timeline. While mostly non-binding, certain provisions like confidentiality and exclusivity can be made explicitly binding. The LOI helps parties identify and address potential issues early in the negotiation process, reducing the likelihood of misunderstandings during the preparation of the final purchase agreement. It must comply with relevant state and federal real estate laws and regulations while remaining flexible enough to accommodate specific transaction requirements.
