Document background
The Letter Of Intent Commercial (Real Estate) is a crucial preliminary document used in New Zealand commercial property transactions to establish the initial framework for negotiations between parties. It is typically employed when a potential purchaser wishes to formally express their serious interest in acquiring commercial property while maintaining flexibility for detailed negotiations. This document outlines key commercial terms including proposed purchase price, due diligence requirements, and timeline, while clearly distinguishing between binding and non-binding provisions. Under New Zealand law, particularly relevant to commercial real estate transactions, the LOI serves as a stepping stone toward the final sale and purchase agreement, allowing parties to proceed with confidence while conducting necessary due diligence and securing financing. It's particularly important in complex commercial transactions where significant due diligence is required or where overseas investment approval might be needed.
