Document background
The Commercial Letter of Intent (LOI) for real estate transactions is a crucial preliminary document in the Indian real estate sector, commonly used to initiate significant property transactions. This document type, specifically the Loi Commercial (Real Estate), is utilized when parties wish to formally express their serious interest in a property transaction while maintaining flexibility for further negotiations. It typically precedes more formal agreements and is governed by Indian contract law, particularly the Indian Contract Act, 1872, and various state-specific real estate regulations. The document serves to outline key commercial terms, establish basic understanding between parties, and sometimes secure exclusivity periods, while generally remaining non-binding except for specific provisions. It's particularly relevant in complex commercial real estate transactions where detailed due diligence and negotiations are anticipated.
