The Lease Proposal Letter of Intent is a crucial preliminary document in New Zealand's commercial property leasing process. It is typically used when a prospective tenant wishes to formally express their interest in leasing a property and document the basic terms of the proposed lease arrangement. While primarily non-binding, this document helps parties establish clear expectations and forms the basis for subsequent lease negotiations. The letter should comply with New Zealand property law requirements and commercial practices, particularly considering the Property Law Act 2007 and Contract and Commercial Law Act 2017. A well-drafted Lease Proposal Letter of Intent typically includes key commercial terms, proposed use of the premises, timeline for negotiations, and any specific conditions that need to be met before proceeding to a formal lease agreement.
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1. Date and Addressing: Current date and proper addressing to the intended recipient including full legal name and address
2. Introduction and Purpose: Clear statement of intent to lease the property and the purpose of the letter
3. Property Details: Specific description and address of the property proposed to be leased
4. Key Commercial Terms: Essential lease terms including proposed rental amount, lease term, commencement date, and any rent reviews
5. Proposed Use: Intended use of the premises and any specific requirements
6. Timeline: Proposed timeline for negotiations, due diligence, and execution of formal lease
7. Non-Binding Statement: Clear statement that the letter is non-binding except for specific clauses
8. Signature Block: Space for signatures of both parties if acknowledgment is required
1. Due Diligence Requirements: Include when specific investigations or reports are needed before proceeding with the lease
2. Exclusivity Period: Include when requesting exclusive negotiation rights for a specified period
3. Conditions Precedent: Include when there are specific conditions that must be met before proceeding with the formal lease
4. Confidentiality Provisions: Include when dealing with sensitive commercial information or in high-value transactions
5. Cost Allocation: Include when there's a need to specify who bears the costs of lease preparation and due diligence
6. Broker/Agent Declaration: Include when real estate agents or brokers are involved in the transaction
1. Floor Plan: Preliminary floor plan or sketch of the premises if available
2. Proposed Works Schedule: If any modifications or fit-out works are proposed, outline of the works contemplated
3. Key Lease Terms Summary: Detailed summary of proposed commercial terms in table format
4. Due Diligence Checklist: List of required investigations and documents to be reviewed
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Relevant Roles
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Chief Financial Officer
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Expansion Manager
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Corporate Real Estate Director
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