When you buy commercial real estate in Albany, New York, you can expect to keep track of many details. While your real estate purchase agreements contain these details, a letter of intent makes it easier to look at the proposed terms of a deal.
What is a letter of intent? It is a document that typically summarizes the agreed-upon terms of your commercial property purchases. The letter of intent announces that you wish to buy the property, and it can serve as an easy guide for you, other parties and legal representatives to use when drafting formal agreements. These letters also serve as a means of initiating a transaction.
What should a letter of intent include?
Since it is a letter and not a formal contract, they do not need to contain page upon page of complex legal terms. Instead, they outline the terms of the transaction for all involved parties. Below are some things you may choose to include in a letter of intent:
- Description of the property
- Confidentiality terms or clauses
- Identification of the parties involved
- Proposed purchase price of the property
- Property inspection rights and period of due diligence
- Terms of payment for the property and associated contingencies
If you or another party disagrees with the terms outlined in a letter of intent, you can change the document to satisfy you and the other parties. A letter of intent also fills a beneficial role when leasing commercial real estate. For example, your letter of intent to lease a property can specify your rent amount and the terms for renewing the lease.
As you can see, these letters benefit most commercial real estate transactions, especially when drafted by a legal professional. Learning more about New York real estate law can also improve your understanding of a letter of intent.