A commercial purchase letter of intent is a non-binding document that formally expresses the intent to buy the property and outlines the key terms that will form the basis of the final purchase agreement. This document clarifies the buyer’s serious interest and the main elements of the proposed transaction, such as price, financing, and inspection contingencies, facilitating a smoother negotiation and due diligence process.
What to Include
- Identification of Parties: The LOI must clearly specify the names and contact information of both the buyer and the seller, ensuring they can be easily contacted throughout the negotiation process.
- Property Description: A detailed description of the commercial property, including its address and any legal descriptions.
- Purchase Price and Terms: This section may also include any contingencies based on securing financing.
- Due Diligence and Inspections: This section outlines the buyer’s right to conduct a thorough inspection of the property. It should specify the inspection period and detail what happens if significant issues are found, such as the possibility for renegotiation.
- Closing Details: These should also include the proposed closing date and any responsibilities related to closing costs.
- Exclusivity (Optional): In some cases, the letter may propose a period of exclusivity where the seller cannot entertain other offers while negotiations progress.
- Signatures: The document should conclude with signature lines for both parties, along with dates.
Commercial Purchase Letter of Intent Sample
You can download a commercial purchase letter of intent template here in PDF or Word format.
