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name: commercial-real-estate-loi language: en description: >- Drafts a U.S. commercial real estate purchase letter of intent (LOI) framing core deal terms as non-binding while isolating binding provisions (confidentiality, exclusivity). Triggers on LOI/term-sheet requests for commercial property acquisition, PSA pre-wire, exclusivity, or due-diligence entry.

Commercial Real Estate Purchase LOI

Proposes deal terms and a negotiation framework for commercial property acquisition while limiting binding effect to specified provisions only.

Gather Before Drafting

1. Parties — legal names, entity types, authority, notice addresses.
2. Property — street address, county/state, APN(s), included/excluded assets.
3. Economics — price, consideration type, deposit amount and timing, financing posture.
4. Timeline — due-diligence period, PSA target, closing target.
5. Binding scope — confidentiality terms, exclusivity window, expense allocation, governing law.

Document Structure

Header & Intro

• Date, seller name/address, subject line: "Letter of Intent – [Property Address/Name]".
• Identify buyer, seller, property, and intended transaction.
• State non-binding nature except specified sections.

Core Terms

Term	Instruction	Placeholder
Buyer	Full legal name; allow assignment to affiliate/SPE if intended	[Buyer Legal Name]
Seller	Full legal name; confirm record title holder(s)	[Seller Legal Name]
Property	Address, county, state, APN(s), improvements, fixtures	[Property Description]
Purchase Price	Fixed or adjustable; state adjustment method	[Price]
Consideration	Cash, debt assumption, seller financing, or mix	[Consideration]
Earnest Money	Amount, timing after PSA, escrow holder, refundability triggers	[Deposit Terms]
Due Diligence	Days from PSA; scope; buyer discretion; termination right	[DD Period/Scope]
Financing	Contingent or cash; proof of funds/commitment	[Financing Terms]
Closing	Target date or days after contingencies; extensions	[Closing Date]
Closing Costs	Allocation of title, escrow, taxes, surveys, fees	[Cost Allocation]

Due-Diligence Scope Checklist

• Physical inspections and access rules
• Environmental review and reports
• Title commitment, exceptions, survey
• Leases, rent roll, tenant files, estoppels
• Operating statements and expense history
• Zoning, permitted use, compliance records
• Service contracts and vendor agreements

Binding Provisions Block

Create a discrete section titled "Binding Provisions" expressly stating these terms bind while all others do not.

Item	Required Elements
Confidentiality	Scope, permitted disclosures, duration, exclusions, remedies
Exclusivity	Start, duration, prohibited activities, breach consequences
Expenses	Each side bears own costs (or seller reimburses on breach)
Governing Law	State law and venue for binding provisions only

Acceptance Block

• Acceptance deadline (date/time, delivery method).
• Buyer signature block (name/title/date).
• Seller block labeled "Agreed and Accepted" (name/title/date).

Optional Clauses (include only if provided)

Clause	When
Tenant Estoppels / SNDA	Multi-tenant or credit-sensitive deals
PSA Milestones	Staged diligence or deposit increases
Risk Allocation	Casualty/condemnation between LOI and closing
Broker Commission	Broker involved or allocation disputes anticipated

Pitfalls & Checks

• Restate non-binding status both in the intro and immediately before signature blocks.
• Isolate binding sections; add a severability sentence for those sections only.
• Avoid "agreement to agree" language unless expressly intended.
• Do not include good-faith negotiation obligations unless the client accepts that exposure.
• Use specific dates and dollar amounts; bracket unknowns with [placeholder].
• Verify compliance with local transfer-tax and escrow customs.
• If seller is not the record owner, require evidence of authority to sell.

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