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.4license: Apache-2.05---67# Commercial Real Estate Purchase LOI89Proposes deal terms and a negotiation framework for commercial property acquisition while limiting binding effect to specified provisions only.1011## Gather Before Drafting12131. **Parties** — legal names, entity types, authority, notice addresses.142. **Property** — street address, county/state, APN(s), included/excluded assets.153. **Economics** — price, consideration type, deposit amount and timing, financing posture.164. **Timeline** — due-diligence period, PSA target, closing target.175. **Binding scope** — confidentiality terms, exclusivity window, expense allocation, governing law.1819## Document Structure2021### Header & Intro2223- Date, seller name/address, subject line: "Letter of Intent – [Property Address/Name]".24- Identify buyer, seller, property, and intended transaction.25- State non-binding nature except specified sections.2627### Core Terms2829| Term | Instruction | Placeholder |30|---|---|---|31| Buyer | Full legal name; allow assignment to affiliate/SPE if intended | `[Buyer Legal Name]` |32| Seller | Full legal name; confirm record title holder(s) | `[Seller Legal Name]` |33| Property | Address, county, state, APN(s), improvements, fixtures | `[Property Description]` |34| Purchase Price | Fixed or adjustable; state adjustment method | `[Price]` |35| Consideration | Cash, debt assumption, seller financing, or mix | `[Consideration]` |36| Earnest Money | Amount, timing after PSA, escrow holder, refundability triggers | `[Deposit Terms]` |37| Due Diligence | Days from PSA; scope; buyer discretion; termination right | `[DD Period/Scope]` |38| Financing | Contingent or cash; proof of funds/commitment | `[Financing Terms]` |39| Closing | Target date or days after contingencies; extensions | `[Closing Date]` |40| Closing Costs | Allocation of title, escrow, taxes, surveys, fees | `[Cost Allocation]` |4142### Due-Diligence Scope Checklist4344- Physical inspections and access rules45- Environmental review and reports46- Title commitment, exceptions, survey47- Leases, rent roll, tenant files, estoppels48- Operating statements and expense history49- Zoning, permitted use, compliance records50- Service contracts and vendor agreements5152### Binding Provisions Block5354Create a discrete section titled "Binding Provisions" expressly stating these terms bind while all others do not.5556| Item | Required Elements |57|---|---|58| Confidentiality | Scope, permitted disclosures, duration, exclusions, remedies |59| Exclusivity | Start, duration, prohibited activities, breach consequences |60| Expenses | Each side bears own costs (or seller reimburses on breach) |61| Governing Law | State law and venue for binding provisions only |6263### Acceptance Block6465- Acceptance deadline (date/time, delivery method).66- Buyer signature block (name/title/date).67- Seller block labeled "Agreed and Accepted" (name/title/date).6869### Optional Clauses (include only if provided)7071| Clause | When |72|---|---|73| Tenant Estoppels / SNDA | Multi-tenant or credit-sensitive deals |74| PSA Milestones | Staged diligence or deposit increases |75| Risk Allocation | Casualty/condemnation between LOI and closing |76| Broker Commission | Broker involved or allocation disputes anticipated |7778## Pitfalls & Checks7980- Restate non-binding status both in the intro and immediately before signature blocks.81- Isolate binding sections; add a severability sentence for those sections only.82- Avoid "agreement to agree" language unless expressly intended.83- Do not include good-faith negotiation obligations unless the client accepts that exposure.84- Use specific dates and dollar amounts; bracket unknowns with `[placeholder]`.85- Verify compliance with local transfer-tax and escrow customs.86- If seller is not the record owner, require evidence of authority to sell.8788---
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