Document background
The Commercial Real Estate Letter of Intent is a crucial preliminary document used in Canadian commercial property transactions to establish the fundamental terms of a proposed deal before proceeding to formal agreements. It is typically employed when parties have reached a general understanding but need to document key terms before investing in detailed due diligence and formal contract preparation. The document outlines essential elements such as property identification, price or lease terms, timeline, and conditions precedent, while usually maintaining a non-binding nature except for specific provisions like confidentiality and exclusive dealing. Under Canadian jurisdiction, while the LOI itself may not be binding, it carries significant business implications and often serves as the blueprint for the final agreement. It's particularly important in complex commercial real estate transactions where multiple stakeholders and substantial investments are involved.
