"Letter of Intent Template Lease - DOC"
Purchaser Letter Head Date Brauvin Real Estate ATTN: Mr. James L. Brault 205 North Michigan Avenue, Suite 1900 Chicago, IL 60601 RE: Property Name, Address, City and State (the “Property”) Dear Mr. Brault: Based on the information supplied to us, we are prepared to proceed with the acquisition of the subject Property under the following general terms and conditions: 1. Purchase Price - The total purchase price for the above-mentioned Property will be $ cash payable at closing. The Property will be delivered free and clear of all liens and encumbrances, and subject only to the lease described in the offering memorandum. 2. Lease Terms - The Property is leased to (d/b/a ) for an original lease term of ( ) years with ( ) year options. The Lease is set to expire in the year 20 . The Lease is trip net to the landlord for all costs associated with the operation and maintenance of the Property, including the roof and structure. The Lease provides a current annual minimum base rent of $ payable monthly in advance. 3. Transaction Costs - The Purchaser shall pay for the title insurance, survey and deed transfer taxes for the property and any recording and escrow fees. The Purchaser shall also pay for the Phase I ESA, and any other third party reports, including appraisals, it may require. Each party shall pay their respective attorney’s fees. 4. Investigation Period - Purchaser will require a due diligence investigation period lasting no more than thirty (30) calendar days from the effective date of contract. During this period, with the Seller's full cooperation and at Purchaser's sole cost and expense, Purchaser will conduct a physical inspection and review all relevant records of the Property, the Lease, the operating agreements and the tenant’s financial statements. In addition, Seller will provide the detailed offering memorandum, if available, the Lease and other due diligence information as Purchaser may reasonably request. If the results of this investigation lead Purchaser to believe the Property will not perform in accordance with its objectives, then the contract will be terminated. 5. Closing - The closing will occur within ten (10) calendar days after the expiration of the Investigation Period. 6. Contract Period - The parties recognize this letter is intended to be a non-binding expression of interest and a basis to proceed to a formal purchase contract. The Brauvin agrees to allow Purchaser a period of ten (10) calendar days from the acceptance date of this letter to prepare and negotiate a binding sale & purchase contract and further agrees not to negotiate with another party during this period. D:\Docstoc\Working\pdf\00ef3817-e914-4320-8106-e767c707196f.doc Brauvin Real Estate Page 2 Month and day, 20 7. Commission – Seller and Purchaser shall indemnify the other against any claim for a brokerage commission or related fee(s) by a third party as it relates to the assets contemplated herein. Both parties mutually represent to each other that they have not dealt with any broker with regards to this sale. 8. Earnest Money Deposit - Purchaser shall deposit the amount of $50,000 with a title company selected by Seller within three (3) business days of mutual execution of a Sale & Purchase Agreement. The earnest money deposit shall become non-refundable to Purchaser one (1) business day after the expiration of the Investigation Period, assuming the Sale & Purchase Agreement is in binding affect at the time. Within three (3) business days of our receipt of this letter acknowledging your acceptance, we shall forward a Sale and Purchase Agreement for your review. Realizing time is of the essence, we will try to expedite the process and use facsimile transmissions and e-mail as acceptable forms of communication and acknowledgements. Unless this letter is signed and returned by 5:00 p.m. (CST) on , 20 it will expire. We look forward to your response and working towards the consummation of this transaction. Agreed and accepted by Purchaser: Agreed and accepted by Seller: ___________________ _______________________________ Purchaser Seller: ____________________________ Signature ____________________________ Title Date ____________________________ Address 1 ____________________________ Address 2 ____________________________ City, State Zip ____________________________ Phone ____________________________ Fax H:\EGIL\Letters\Letter of Intent\Selling\LOI Template.DOC D:\Docstoc\Working\pdf\00ef3817-e914-4320-8106-e767c707196f.doc