letters-and-notices-templates
Commercial Real Estate Letter of Intent Template: Deal Terms
Use our free Commercial Real Estate Letter of Intent template to outline the main terms of a proposed purchase of office, retail, industrial, or other commercial property before drafting a formal purchase agreement. Customize, download, and print in minutes.
COMMERCIAL REAL ESTATE LETTER OF INTENT TEMPLATE FAQ
What is a Commercial Real Estate Letter of Intent?
A Commercial Real Estate Letter of Intent (LOI) is a document where a buyer sets out the main proposed terms for purchasing a commercial property. It typically addresses the property description, purchase price, earnest money, due diligence, existing leases, closing timing, and which provisions are binding.
When is a commercial real estate LOI used?
It is typically used in office, retail, industrial, mixed-use, or land transactions where the buyer and seller want to confirm the outline of a deal before investing time and money in full legal documentation, financing, and detailed inspections.
Is a Commercial Real Estate LOI legally binding?
Most commercial LOIs state that deal terms like price and timing are non-binding, while certain clauses — such as confidentiality, access for inspections, and sometimes exclusivity — are intended to be binding. Whether a specific LOI is binding depends on its wording and applicable law, so it should clearly state which sections are binding and which are not.
What should a Commercial Real Estate Letter of Intent include?
A clear LOI identifies the buyer and seller, describes the property, states the proposed purchase price and earnest money, outlines due diligence and contingencies (title, survey, environmental, financing, and existing leases), describes closing timing and cost allocation, and explains binding vs. non-binding provisions.
Can this LOI address income-producing property with tenants?
Yes. The LOI can refer to existing leases, rent rolls, estoppel certificates, security deposits, and other income-related items. The details are usually handled in the formal purchase and sale agreement, but the LOI can summarize key expectations.
Can AI Lawyer help me customize this Commercial Real Estate LOI template?
Yes. AI Lawyer can help you adapt this Commercial Real Estate Letter of Intent template to your transaction by adjusting deal structure, property details, contingencies, and binding language while keeping the document clear and consistent.