The Letter of Intent to Lease is a crucial preliminary document in Malaysian real estate transactions, serving as a stepping stone toward a formal lease agreement. It is typically used when parties have reached initial understanding on key commercial terms but need to formalize their intentions before proceeding with a full lease agreement. The document outlines essential terms such as property details, proposed rental rates, lease duration, and any specific conditions that need to be met. Under Malaysian law, while most provisions are non-binding, certain aspects like confidentiality and exclusivity can be made legally binding. This document is particularly important in commercial leasing transactions where significant due diligence and negotiations are required before finalizing the lease.
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1. Letter Header: Date, recipient's address, and formal letter opening
2. Introduction: Identifies the parties and their roles (prospective landlord and tenant)
3. Purpose Statement: Clear statement of intent to enter into a lease agreement
4. Property Details: Full description and address of the property to be leased
5. Key Commercial Terms: Rental amount, lease duration, proposed commencement date
6. Security Deposit: Amount and payment terms for the security deposit
7. Timeline: Key dates for negotiation, documentation, and execution of the lease
8. Conditions Precedent: Any conditions that must be met before proceeding with the lease
9. Non-Binding Statement: Statement clarifying which parts are binding/non-binding
10. Confidentiality: Statement regarding confidentiality of discussions and terms
11. Closing: Signature blocks and formal letter closing
1. Due Diligence Period: Include when tenant requires time to conduct property investigations
2. Exclusivity Period: Include when requesting exclusive negotiation rights for a specified period
3. Broker/Agent Declaration: Include when real estate agents or brokers are involved
4. Renovation/Fitting Out: Include when tenant requires specific modifications to the property
5. Break Option: Include when early termination possibilities need to be addressed
6. Payment of Costs: Include when there's a need to specify who bears legal and other costs
1. Floor Plan: Detailed plan showing the premises to be leased
2. Proposed Lease Terms: Summary of key commercial and legal terms for the final lease
3. Due Diligence Requirements: List of documents and information required for due diligence
4. Timeline Schedule: Detailed timeline for lease negotiation and execution process
5. Renovation Scope: Preliminary plans for any agreed modifications or improvements
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Legal
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Finance
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Relevant Roles
Real Estate Manager
Property Manager
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Legal Counsel
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Operations Director
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Leasing Manager
Asset Manager
Corporate Services Manager
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Real Estate Director
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