Letter of Intent for Commercial Lease
A Letter of Intent for Commercial Lease (LOI) is a preliminary agreement between a potential tenant and landlord outlining the basic terms and conditions of a lease for a commercial property. It serves as a starting point for negotiations and is generally non-binding, meaning it does not constitute a formal contract but indicates a serious intent to move forward with leasing the space.
The Letter of Intent for Commercial Lease typically includes key elements such as the proposed rental rate, lease duration, property description, and any specific terms that the parties wish to negotiate. It may also address issues such as security deposits, maintenance responsibilities, and any contingencies that must be satisfied before entering into a formal lease agreement.
For example, a small business interested in renting a storefront might send a Letter of Intent for Commercial Lease to the landlord stating that they would like to lease the property for five years at a monthly rent of $3,000. The LOI could also mention that the business intends to start operations within three months of signing the lease and requests the landlord to cover certain maintenance costs.
This document is valuable for both parties as it helps clarify intentions and lays the groundwork for drafting a detailed lease agreement, potentially saving time and legal expenses later in the process.
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