A letter of intent plays a very important part in a commercial real estate purchase or lease transaction. Purchasing or leasing commercial real estate is a big commitment Outlining some initial terms of the transaction can save you a lot off hassle and money. A letter of intent is also much shorter than a full contract and can be easily converted into a contract once all the terms on agreed upon. A letter of intent is cheaper and faster than a full contract.
Also known as a term sheet or commitment letter, a letter of intent is useful in many situations, including:
- If you want the terms of the sale or lease decided before you fully commit to the purchase.
- If the buyer needs to provide evidence of the intended deal to a lender.
- If the buyer or the seller, tenant or landlord, wants to entertain other possible deals at the same time without committing to one. It is important to carefully read through a letter of intent as one party could request a period of time that requires exclusive negotiations.
- If the parties want to limit the time of negotiation, a letter of intent can set a deadline to ensure timely response.
- If the buyer doesn’t immediately want to commit any earnest money to the purchase.
At Menlo Group Commercial Real Estate, we offer many commercial real estate services including facilitating commercial real estate sales and leases and developing letters of intent. Our commitment is to our clients and to helping their transactions go smoothly. As such, we treat every property as if we own it ourselves. We also pride ourselves on prompt and clear communication with our clients. We can be your single source of real estate brokerage.
Contact us here to schedule a consultation. With a letter of intent or any other part of a commercial real estate transaction, we put your priorities first.