Commercial Real Estate Letter Of Intent

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Commercial Real Estate Letter Of Intent Powered By Docstoc
					This Letter of Intent is addressed to a seller of commercial property from a buyer. The
Letter of Intent sets out the terms of the deal between the two parties for the purchase
of commercial property and includes such terms as the purchase price to be paid and
the anticipated closing date of the purchase and sale. This letter can be customized to
fit the needs of the drafting parties and is ideal for use by potential sellers and buyers of
commercial property who wish to have a record of the terms they have already agreed
upon.
      LETTER OF INTENT – COMMERCIAL REAL ESTATE

Date: _____________ [Instruction: insert date]

__________________
__________________
__________________
[Instruction: insert property owner’s name and address]

Attention: ______________________ [Instruction: if there is a particular person whose
attention this letter should be addressed, insert that person’s name here]

Dear Sir/Madam:
Re:    Proposal to Purchase ___________________ [Instruction: insert address or other
description of the property]

        Legal Description: To be provided at a later date [Instruction: insert if the Legal
Description of the property is not known, leave the bolded language as is (but remove
yellow highlight); if the Legal Description is known, delete the bolded language and replace
it with the legal description]

        We understand that ____________________ [Instruction: insert name of the owner of
the commercial real property] (the “Seller”) is the owner of the commercial real property,
located at ____________________ [Instruction: insert address or other location description
of the property] (the “Property”). The Property is currently Zoned ___________ [Instruction:
insert the zoning designation of the property].

         This letter confirms our discussions to date and our mutual understanding with respect to
the potential acquisition (the “Proposed Transaction”) by _________________ [Instruction:
insert name of proposed purchaser] (the “Purchaser”) of the Property. Specifically, this
letter sets out the general terms and parameters of our initial discussions regarding the Proposed
Transaction, including certain terms and conditions that are proposed to be included in a
definitive purchase agreement with respect to the Proposed Transaction (the “Definitive
Agreement”).
 1.      Purchase Price. The Purchaser will on the Closing Date (as defined below) purchase
         the Property. The purchase price (the “Purchase Price”) for the Property will be
         $___________, [Instruction: insert proposed purchase price] and shall include
         ________________________________ [Instruction: insert additional proposed
         inclusions].

 2.      Deposit. Upon execution of this letter of intent, the Purchaser shall pay to the Seller a
         deposit of _______________ ($__________) [Instruction: insert initial deposit
         amount] to be applied on account of the payment of the Purchase Price on the Closing
         Date. Upon execution of the Definitive Agreement, the Purchaser will pay to the Seller
         a further deposit (together with the first deposit and with accrued interest, the
     “Deposits”) in an amount equal to _____________ ($__________) [Instruction: insert
     additional deposit amount] to be applied on account of the payment of the Purchase
     Price on the Closing Date. If the closing of the Proposed Transaction (the “Closing”)
     does not occur:

     (a)     due to a default or breach by the Purchaser of any of its covenants, agreements,
             representations or warranties under the Definitive Agreement (a “Purchaser’s
             Default”), the Deposits paid or due at the time of default will be forfeited and
             retained by the Seller as liquidated damages and not as a penalty; and

     (b)     due to a default or breach by the Seller of any of its covenants, agreements,
             obligations, representations and warranties under the Definitive Agreement (a
             “Seller’s Default”), the Deposits paid or due at the time of default will be
             returned to the Purchaser.

     Whereupon the Definitive Agreement will be terminated and all parties will be released
     of any further obligations thereunder save and except for Section 10 hereof and any
     terms of the Definitive Agreement which are expressed to survive termination.

3.   Payment of Purchase Price. Payment of the Purchase Price will be either by all cash
     or certified check or, partly for cash and partly by way of a Seller take back mortgage
     (“VTB Mortgage”) as can be negotiated and agreed to by the parties both acting
     reasonably. Provided that any such VTB mortgage shall be a first charge upon the
     Property.

4.   Timing. Following the signing of this letter, the Purchaser and the Seller will work
				
DOCUMENT INFO
Description: This Letter of Intent is addressed to the seller of a commercial property from the buyer. The Letter of Intent sets out the terms of the deal between the two parties for the purchase of commercial property and includes such terms as the purchase price to be paid and the anticipated closing date of the purchase and sale. This letter can be customized to fit the needs of the drafting parties and is ideal for use by potential sellers and buyers of commercial property who wish to have a record of the terms they have already agreed upon.
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