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---56# Commercial Real Estate Purchase LOI78Proposes deal terms and a negotiation framework for commercial property acquisition while limiting binding effect to specified provisions only.910## Gather Before Drafting11121. **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.1718## Document Structure1920### Header & Intro2122- 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.2526### Core Terms2728| 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]` |4041### Due-Diligence Scope Checklist4243- Physical inspections and access rules44- Environmental review and reports45- Title commitment, exceptions, survey46- Leases, rent roll, tenant files, estoppels47- Operating statements and expense history48- Zoning, permitted use, compliance records49- Service contracts and vendor agreements5051### Binding Provisions Block5253Create a discrete section titled "Binding Provisions" expressly stating these terms bind while all others do not.5455| 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 |6162### Acceptance Block6364- Acceptance deadline (date/time, delivery method).65- Buyer signature block (name/title/date).66- Seller block labeled "Agreed and Accepted" (name/title/date).6768### Optional Clauses (include only if provided)6970| 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 |7677## Pitfalls & Checks7879- 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.8687---
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