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Commonly Asked Questions about Commercial Property Sales Forms

The LOI is used to: Outline the key aspects of a proposed transaction that the parties agree on. Signify that the parties are committed to moving forward on a deal. Serve as a guiding document for drafting a formal binding contract.
In commercial real estate, a Letter of Intent is a preliminary agreement that is negotiated between a tenant and landlord or buyer and seller. The LOI or Letter of Intent states the primary economics and deal points with proposed terms.
Developed by top attorneys, brokers, property managers and other real estate experts, AIR CRE Contracts are the most efficient and cost-effective way to close deals. This is a unique application of customizable commercial real estate contract templates, including Purchase and Sale, Lease, and Listing agreements.
How to Write an LOI in Commercial Real Estate Structure it like a letter. Write the opening paragraph. State the parties involved. Draft a property description. Outline the terms of the offer. Include disclaimers. Conclude with a closing statement.
A letter of intent is used in commercial real estate transactions whenever negotiations are expected to be complex. They are typically drafted after someone has already viewed the property and had preliminary conversations with the owner and/or broker about moving forward with the transaction.
Letters of intent are typically non-binding agreements that allow a purchaser to take a closer look at the expenses, revenues, and operations of a company before putting together a formal contract.
A sales and purchase agreement (SPA) is a binding legal contract that obligates a buyer to buy and a seller to sell a product or service. SPAs are often used in real estate deals or when two parties are transacting a large item or a large number of items.
An agreement to sell is an executory contract of sale. Under the Sale of Goods Act 1979, s 2 (5): where under a contract of sale the transfer of the property in the goods is to take place at a future time, or subject to some condition later to be fulfilled, the contract is called an agreement to sell.