1---2name: commercial-real-estate-loi3description: Drafts a U.S. commercial real estate purchase letter of intent (LOI) framing core deal terms as non-binding while isolating binding provisions (confidentiality, exclusivity). Triggers on LOI/term-sheet requests for commercial property acquisition, PSA pre-wire, exclusivity, or due-diligence entry.4---5
6# Commercial Real Estate Purchase LOI
7
8Proposes deal terms and a negotiation framework for commercial property acquisition while limiting binding effect to specified provisions only.
9
10## Gather Before Drafting
11
121. **Parties** — legal names, entity types, authority, notice addresses.
132. **Property** — street address, county/state, APN(s), included/excluded assets.
143. **Economics** — price, consideration type, deposit amount and timing, financing posture.
154. **Timeline** — due-diligence period, PSA target, closing target.
165. **Binding scope** — confidentiality terms, exclusivity window, expense allocation, governing law.
17
18## Document Structure
19
20### Header & Intro
21
22- Date, seller name/address, subject line: "Letter of Intent – [Property Address/Name]".
23- Identify buyer, seller, property, and intended transaction.
24- State non-binding nature except specified sections.
25
26### Core Terms
27
28| Term | Instruction | Placeholder |
29|---|---|---|
30| Buyer | Full legal name; allow assignment to affiliate/SPE if intended | `[Buyer Legal Name]` |
31| Seller | Full legal name; confirm record title holder(s) | `[Seller Legal Name]` |
32| Property | Address, county, state, APN(s), improvements, fixtures | `[Property Description]` |
33| Purchase Price | Fixed or adjustable; state adjustment method | `[Price]` |
34| Consideration | Cash, debt assumption, seller financing, or mix | `[Consideration]` |
35| Earnest Money | Amount, timing after PSA, escrow holder, refundability triggers | `[Deposit Terms]` |
36| Due Diligence | Days from PSA; scope; buyer discretion; termination right | `[DD Period/Scope]` |
37| Financing | Contingent or cash; proof of funds/commitment | `[Financing Terms]` |
38| Closing | Target date or days after contingencies; extensions | `[Closing Date]` |
39| Closing Costs | Allocation of title, escrow, taxes, surveys, fees | `[Cost Allocation]` |
40
41### Due-Diligence Scope Checklist
42
43- Physical inspections and access rules
44- Environmental review and reports
45- Title commitment, exceptions, survey
46- Leases, rent roll, tenant files, estoppels
47- Operating statements and expense history
48- Zoning, permitted use, compliance records
49- Service contracts and vendor agreements
50
51### Binding Provisions Block
52
53Create a discrete section titled "Binding Provisions" expressly stating these terms bind while all others do not.
54
55| Item | Required Elements |
56|---|---|
57| Confidentiality | Scope, permitted disclosures, duration, exclusions, remedies |
58| Exclusivity | Start, duration, prohibited activities, breach consequences |
59| Expenses | Each side bears own costs (or seller reimburses on breach) |
60| Governing Law | State law and venue for binding provisions only |
61
62### Acceptance Block
63
64- Acceptance deadline (date/time, delivery method).
65- Buyer signature block (name/title/date).
66- Seller block labeled "Agreed and Accepted" (name/title/date).
67
68### Optional Clauses (include only if provided)
69
70| Clause | When |
71|---|---|
72| Tenant Estoppels / SNDA | Multi-tenant or credit-sensitive deals |
73| PSA Milestones | Staged diligence or deposit increases |
74| Risk Allocation | Casualty/condemnation between LOI and closing |
75| Broker Commission | Broker involved or allocation disputes anticipated |
76
77## Pitfalls & Checks
78
79- Restate non-binding status both in the intro and immediately before signature blocks.
80- Isolate binding sections; add a severability sentence for those sections only.
81- Avoid "agreement to agree" language unless expressly intended.
82- Do not include good-faith negotiation obligations unless the client accepts that exposure.
83- Use specific dates and dollar amounts; bracket unknowns with `[placeholder]`.
84- Verify compliance with local transfer-tax and escrow customs.
85- If seller is not the record owner, require evidence of authority to sell.
86
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