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Letter Of Intent For Purchase Of Commercial Property Template for Australia

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Key Requirements PROMPT example:

Letter Of Intent For Purchase Of Commercial Property

"I need a Letter of Intent for Purchase of Commercial Property for a multi-tenant retail space in Brisbane CBD, with specific provisions for maintaining existing lease agreements and a proposed settlement date of March 2025."

Document background
A Letter of Intent For Purchase of Commercial Property is a preliminary document used in Australian commercial real estate transactions to establish the framework for a potential property purchase. This document is typically used after initial negotiations but before entering into a formal contract of sale, when parties need to document their serious intention to proceed with the transaction while maintaining flexibility for further negotiation. It includes essential terms such as property details, proposed purchase price, due diligence requirements, and timeline, while usually remaining non-binding except for specific provisions like confidentiality and exclusivity. The document serves as a crucial stepping stone in Australian commercial property transactions, providing clarity on key terms while allowing parties to proceed with detailed due diligence and formal contract preparation.
Suggested Sections

1. Date: The date of the letter

2. Parties' Details: Full legal names and addresses of both the potential purchaser and property owner

3. Property Identification: Clear description and address of the commercial property in question

4. Expression of Interest: Clear statement of intent to purchase the property, subject to conditions

5. Purchase Price: Proposed purchase price or price range for the property

6. Key Commercial Terms: Essential terms including payment structure, deposit amount, and proposed settlement period

7. Due Diligence Period: Proposed timeframe and scope for due diligence investigations

8. Exclusivity Period: Period during which the seller agrees not to negotiate with other parties

9. Confidentiality: Statement regarding confidentiality of negotiations and information shared

10. Non-Binding Nature: Clear statement that the letter is non-binding except for specific clauses (like confidentiality)

11. Next Steps: Outline of the process for moving forward with the transaction

12. Expiry Date: Date by which the letter of intent must be accepted or expires

13. Signature Blocks: Space for signatures of authorized representatives of both parties

Optional Sections

1. Break Fee: Details of any break fee payable if either party withdraws, used when there's significant due diligence cost

2. Financing Contingency: Included when the purchase is subject to the buyer obtaining financing

3. Property Access Terms: Used when specific access arrangements for inspection and due diligence need to be detailed

4. Existing Tenancies: Included when there are existing tenants and specific arrangements need to be addressed

5. Environmental Matters: Used when environmental due diligence is a significant concern

6. Planning Permits: Included when specific planning or zoning requirements need to be addressed

7. Asset List: Used when specific fixtures, fittings, or equipment are to be included/excluded from the sale

8. Governing Law: Included when there's a need to specify jurisdiction, particularly for interstate transactions

Suggested Schedules

1. Property Details Schedule: Detailed description of the property including lot number, title references, and area

2. Due Diligence Requirements: List of specific documents and information required for due diligence

3. Commercial Terms Summary: Detailed breakdown of the commercial terms including payment structure and timelines

4. Existing Leases Schedule: Summary of any existing lease arrangements affecting the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























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Relevant Industries

Real Estate

Commercial Property

Retail

Industrial

Healthcare

Hospitality

Education

Professional Services

Manufacturing

Logistics

Technology

Financial Services

Relevant Teams

Legal

Real Estate

Property Management

Finance

Operations

Risk Management

Compliance

Corporate Development

Investment

Facilities Management

Due Diligence

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Property Manager

Real Estate Director

Property Investment Manager

Legal Counsel

Corporate Lawyer

Property Development Manager

Facilities Manager

Asset Manager

Investment Analyst

Due Diligence Manager

Real Estate Broker

Commercial Property Consultant

Risk Management Officer

Company Secretary

Financial Controller

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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