Writing a Letter of Intent-to-Lease
Outline Your Major Deal Points
The Letter of Intent will list the important items that you wish to be included in the Lease Agreement. If you are working directly with the Listing Agent, the agent will probably offer to write the letter of intent on your behalf. However, be aware that the listing agent only represents the landlord. You would be well advised to utilize a member of The Mark Staples Team @ KW Commercial or a real estate attorney familiar with leases to help you write your Letter of Intent.”
Items to Include
The address of the premises, the size (usually square footage) of the premises, the term of the lease, the base rent, TICAM (taxes, insurance, common area maintenance charges - if applicable), the lease commencement date and rent abatement plus conditions, TI or tenant improvement allowances, options to renew, assignment or sublet rights, condition of property upon delivery from the landlord.
1. In the majority of cases, the Letter of Intent (LOI) is not a contract and therefore is non-binding on either party. It is used as an outline to prepare the actual lease.
2. Until all parties (the Landlord, you, and any additional guarantors have signed a binding lease, the Landlord may lease the space to another party.
3. Negotiating a Letter of Intent can sometimes take quite a while, usually depending on the depth of the negotiations and peoples busy schedules.
4. As mentioned above, a listing agent "only" represents the Landlord's best interests...not yours. If you decide to "go it alone" without representation then remember; Before you sign a binding agreement or a lease contract, you should consider paying a professional attorney to review the documents for you. This is especially important if the lease is not a standardized form that is approved by the North Carolina Real Estate Commission and State Attorney's office.