A Letter of Intent Real Estate Lease is commonly used in New Zealand commercial property transactions as a preliminary step before entering into a formal lease agreement. It is typically employed when parties have reached initial understanding on key commercial terms but need to document their intentions while conducting due diligence and negotiating detailed lease provisions. The document, while generally non-binding, provides a clear framework for negotiations and demonstrates commitment from both parties. It typically includes proposed rental terms, property details, intended use, timeline for completion, and any specific requirements under New Zealand property law. This document is particularly valuable in complex commercial leasing situations where detailed negotiation and due diligence are required before finalizing a binding lease agreement.
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1. Date and Parties: Opening of letter identifying sender and recipient, including full legal names and addresses
2. Subject Line: Clear identification of the property and purpose of the letter
3. Introduction: Brief statement of intent to lease the specified property
4. Property Details: Specific description of the property, including address and any relevant legal descriptions
5. Key Commercial Terms: Proposed rental amount, lease term, commencement date, and any rent review mechanisms
6. Intended Use: Specified purpose for which the property will be leased
7. Timeline: Proposed timeline for negotiation, due diligence, and execution of formal lease
8. Due Diligence: Overview of intended due diligence process and requirements
9. Binding Provisions: Specific terms that are intended to be binding (typically confidentiality and exclusivity)
10. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions
11. Closing: Signature blocks and acknowledgment sections
1. Deposit Terms: Include when an initial deposit is proposed as part of the transaction
2. Exclusivity Period: Include when parties want to establish a period of exclusive negotiation
3. Conditions Precedent: Include when specific conditions must be met before proceeding with the formal lease
4. Broker/Agent Details: Include when real estate agents or brokers are involved in the transaction
5. Cost Allocation: Include when parties want to specify responsibility for transaction costs
6. Fit-out Provisions: Include when tenant improvements or fit-outs are contemplated
7. Operating Expenses: Include when there's a need to outline intended structure for operating expenses and outgoings
1. Property Plan: Floor plan or site plan of the intended lease area
2. Preliminary Terms Sheet: Detailed list of key commercial terms for the proposed lease
3. Due Diligence Checklist: List of required due diligence items and documentation
4. Timeline Schedule: Detailed timeline of key dates and milestones for the transaction
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Real Estate
Retail
Office Commercial
Industrial
Healthcare
Education
Hospitality
Manufacturing
Warehousing
Professional Services
Technology
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Entertainment
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Relevant Teams
Legal
Real Estate
Operations
Finance
Procurement
Facilities Management
Business Development
Property Management
Asset Management
Risk Management
Corporate Services
Relevant Roles
Real Estate Manager
Property Manager
Commercial Lease Manager
Facilities Manager
Legal Counsel
Corporate Lawyer
Chief Financial Officer
Operations Director
Business Development Manager
Real Estate Agent
Property Consultant
Leasing Executive
Asset Manager
Portfolio Manager
Company Director
Commercial Director
Procurement Manager
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