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LOI Commercial (Real Estate) Template for Pakistan

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Key Requirements PROMPT example:

LOI Commercial (Real Estate)

"I need a LOI Commercial (Real Estate) for the proposed purchase of a 50,000 square foot warehouse facility in Karachi's industrial zone, with an exclusivity period until March 2025 and specific provisions for environmental due diligence."

Document background
The Commercial Letter of Intent (LOI) for real estate transactions is a crucial preliminary document used in Pakistan's commercial property market to initiate formal negotiations between parties. This document type, specifically the LOI Commercial (Real Estate), is typically employed when a potential buyer or tenant wishes to formally express their interest in a property and outline the basic terms of the proposed transaction. It serves as a roadmap for further negotiations while providing a framework that helps parties move toward a definitive agreement. Used extensively in Pakistani real estate transactions, it incorporates local legal requirements and commercial practices, including considerations from relevant legislation such as the Contract Act 1872 and property laws. While generally non-binding, it demonstrates serious intent and often includes certain binding provisions such as confidentiality and exclusivity clauses.
Suggested Sections

1. Sender and Recipient Details: Full legal names and addresses of both parties, including company registration details if applicable

2. Subject Line: Clear identification of the property and type of transaction being proposed

3. Introduction: Brief statement of intent and confirmation of the party's interest in the transaction

4. Property Description: Detailed description of the subject property, including address, size, and any relevant legal identifiers

5. Commercial Terms: Key financial terms including proposed purchase price or lease rate, payment terms, and deposit requirements

6. Transaction Timeline: Proposed timeline for due diligence, negotiations, and completion of the transaction

7. Due Diligence: Outline of the due diligence process and requirements

8. Confidentiality: Statement regarding the confidential nature of the discussions and proposed transaction

9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions

10. Validity Period: Timeline for acceptance and expiration of the LOI

11. Closing: Signature blocks and date

Optional Sections

1. Exclusivity: Proposed period of exclusive negotiations, used when the sender wants to prevent the recipient from entertaining other offers

2. Broker Representation: Declaration of any broker involvement and commission arrangements, included when real estate brokers are involved

3. Conditions Precedent: Specific conditions that must be met before proceeding with the transaction, included for complex deals

4. Cost Allocation: Proposed allocation of transaction costs, included when there are significant costs to be addressed

5. Governing Law: Specification of applicable law and jurisdiction, included in cross-border transactions or when dealing with parties from different provinces

6. Break Fee: Provisions for compensation if either party withdraws, included in high-value transactions

Suggested Schedules

1. Property Details Schedule: Detailed technical description of the property, including boundaries, fixtures, and fittings

2. Financial Terms Schedule: Detailed breakdown of the financial proposal including payment structure and timelines

3. Due Diligence Checklist: List of required documents and information for the due diligence process

4. Site Plans and Maps: Visual representations of the property and its location

5. Existing Encumbrances: List of any existing leases, mortgages, or other encumbrances on 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

























Clauses
























Relevant Industries

Real Estate

Commercial Property Development

Retail

Banking and Financial Services

Healthcare

Hospitality

Manufacturing

Technology

Professional Services

Education

Logistics and Warehousing

Construction

Relevant Teams

Legal

Real Estate

Finance

Business Development

Operations

Facilities Management

Asset Management

Risk Management

Corporate Development

Property Management

Relevant Roles

Real Estate Director

Chief Financial Officer

Property Manager

Legal Counsel

Real Estate Investment Manager

Business Development Manager

Facilities Manager

Corporate Real Estate Manager

Asset Manager

Real Estate Broker

Property Developer

Acquisition Manager

Real Estate Attorney

Commercial Leasing Manager

Chief Operating Officer

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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