Fillable Form Letter of Intent to Purchase Commercial Property

What is a Commercial Purchase Letter of Intent?

A Commercial Purchase Letter of Intent is a formal letter used by a potential buyer to express his or her interest in buying a commercial property. It contains a summary of the major terms of a purchase agreement that needs to be agreed upon by the buyer and seller before proceeding to the legally binding contract or commonly known as a “Commercial Purchase Agreement.”

The Commercial Purchase Letter of Intent may include the following information negotiated by a buyer and a seller:

• Property description
• Financial terms
• Closing procedures
• A professional inspection of the property
• Other terms and conditions

How to write a Commercial Purchase Letter of Intent?

For your convenience, PDRun has a Commercial Purchase Letter of Intent template that you can use. It should be filled out with the following information:

Sender’s Name

Enter your full legal name.

Address

Enter your complete address including the City, State, and ZIP code.

Effective date

Enter the date when the letter was written.

Recipient’s Name

Enter the full legal name of the recipient.

Address

Enter the recipient’s complete address including the City, State, and ZIP code.

I. The Buyer

Enter your full legal name.

II. The Seller

Enter the full legal name of the seller.

III. Property Address

Enter the complete address of the commercial property that will be purchased.

Additional Description

Enter specific details about the commercial property.

IV. Purchase Price

Enter the amount of purchase price in dollars.

V. Purchase Terms

Enter the specific terms of the payment of purchase price.

VI. Bank Financing

Mark the appropriate box to determine the buyer’s ability to purchase the property. You may select:

• Conditional
• Not conditional on their ability to obtain financing

If you choose conditional financing, enter its specific terms.

VII. Closing

Enter the date of closing in the following format: Month, Day, and Year.

VIII. Closing Costs

Mark the appropriate box to determine who is responsible for the closing costs. You may select:

• The Buyer
• The Seller
• Both Parties bearing their own expenses.

IX. Possession

Enter the date of the turnover of the possession of the property in the following format: Month, Day, and Year.

X. Property Inspection

Enter the allowed number of days for the accomplishment of the property inspection.

Enter the number of additional days for the buyer to report any new disclosures to the seller in writing after the property has been inspected.

Enter the allowed number of days for the buyer and seller to reach a mutual agreement after the delivery of the written disclosures.

If the buyer and seller cannot reach a mutual agreement within this particular number of days, the purchase agreement will be terminated and the earnest money will be returned to the buyer.

XI. Binding Effect

Mark the appropriate box to determine the binding effect of this letter of intent. You may select:

• Binding — Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Letter of Intent and consequently agree that this Letter of Intent shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all the rights at law or in equity of the parties under this Letter of Intent.
• Non-binding — Therefore, the parties acknowledge that this Letter of Intent is not enforceable by any party. The terms outlined herein are solely for the purpose of reaching an agreement in the future, of which the Buyer and Seller are not bound.

XII. Standstill Agreement

Enter the deadline date for the buyer and seller to sign a purchase agreement in the following format: Month, Day, and Year.

XIII. Additional Provisions

Enter a list of the additional provisions.

XIV. Currency

This section indicates all the mentions of currency and usage of “$” in this letter refers to the U.S. Dollar.

XV. Governing Law

Enter the name of the state where the property is located.

XVI. Acceptance

Enter the date of the deadline for the recipient to sign and return a duplicate copy of this Letter of Intent.

Buyer’s Signature

Affix the signature of the buyer.

Date

Enter the date when the buyer signed this letter.

Print Name

Enter the full legal name of the buyer in capital letters.

Seller’s Signature

Affix the signature of the seller.

Date

Enter the date when the seller signed this letter.

Print Name

Enter the full legal name of the seller in capital letters.

Tips:

If you wish to modify the Commercial Purchase Letter of Intent template or write one on your own, here are a few suggestions that might help you in doing so:

• Be direct with your intentions.

You have to explicitly state the purpose of why you are writing this letter. Stop beating around the bush and include only the things that are really important. Right from the beginning of the letter, you must clearly indicate your serious intention of buying the commercial property.

• Specify the purchase terms and conditions.

The letter of intent should provide detailed information regarding the purchasing terms and conditions. This is done to make sure the buyer and the seller are on the same page and to avoid further misunderstandings in the future.

• Indicate whether this letter is binding or non-binding.

To establish how this letter will be interpreted, you must indicate whether or not it will be legally binding. You should do this to avoid any confusion, since this document may be used as a piece of evidence in the future if a dispute arises.

• Make sure that the details you will enter are accurate.

Verify every single piece of information that you have written in this letter. Since this document may be legally bounded, you have to produce it as flawlessly as it can be.

Why should I write a Commercial Purchase Letter of Intent?

Writing a Commercial Purchase Letter of Intent is important before finalizing the commercial purchase agreement. This letter serves a lot of purposes and benefits. Here are some of the reasons why you should write a Commercial Purchase Letter of Intent:

• Purchasing a real estate property is a big decision and it involves a huge amount of money. A letter of intent might come in handy in the future if ever you’ll be needing a piece of evidence for your claims in a legal proceeding.
• It makes the overall purchase negotiation faster and easier.
• It gives you a chance to clarify an unclear provision in the proposed agreement.
• It encourages the seller to take the property off the market.
• It might stimulate any unfinished discussions or negotiations which gives both parties the time to address them appropriately.
• It might be useful when obtaining permission for loans and money from a lender or investor.