Are you planning to purchase or lease commercial real estate? Negotiating a letter of intent (also known as an LOI) will be one of the first and most important steps you take on the way to owning or leasing your new property. To help you through that process, here are six quick tips on drafting real estate letters of intent:
1. Make sure your LOI is non-binding.
If you’re not careful, that letter of intent you wrote in a hurry at midnight could become your purchase and sale agreement. To make sure that does not happen, always add language to your LOI, similar to the following, that makes it clear that your letter of intent is non-binding. Continue reading