The Letter of Intent: Why the Terms You Negotiate Before the Contract Matter

In many commercial real estate transactions, the first written agreement between a buyer and seller is not the purchase and sale agreement. It is a letter of intent, commonly referred to as an LOI. An LOI is often only a few pages long and is generally intended to be non-binding, with the exception of certain...

In most commercial real estate transactions, buyers understandably tend to focus on the economic terms – the purchase price, debt structure, and closing date. Those terms matter, but they are only part of the deal. Once a contract is signed, the due diligence period is the buyer’s opportunity to confirm whether the property can actually...