Letters of Intent
A letter of intent in the commercial real estate context is crucial to outline the obligations of the parties involved in the transaction. Fundamental aspects of the transaction may be agreed upon, with other terms still in dispute or simply not yet addressed. A letter of intent is often used to memorialize the essential financial terms of a deal and provides an idea of how far apart the parties are on key aspects. Letters of intent save time and money, particularly to establish whether there is a meeting of the minds on the essentials of the real estate transaction.
At J&J legal, we understand every deal is unique and that letters of intent will change from transaction to transaction. However, there are some common issues we address in letters of intent, including:
- Purchase price
- Assets purchased
- Type of sale
- Assignability of the agreement
- Due diligence period
- Closing date
- Occupancy date
- Cost allocation to close the deal
- Remedies for breach
Whether a letter of intent is binding on the parties depends of the language of the letter. Like any other legal document used to purchase commercial property, letters of intent should be carefully drafted, reviewed, and understood before execution. Contact J&J legal today to discuss the legal consequences of a letter of intent before you sign or to draft a letter on your behalf that adequately protects your business interests and you assets.