A Letter Of Intent To Rent Commercial Space is a crucial preliminary document used in Nigerian commercial real estate transactions when a prospective tenant wishes to formally express interest in leasing a commercial property. This document typically precedes the formal lease agreement and outlines key terms such as proposed rental rates, lease duration, and intended use of the property. While generally non-binding, it may contain certain binding provisions such as confidentiality and exclusivity periods. The document must comply with Nigerian property law requirements and often serves as a basis for further negotiations. It's particularly important in complex commercial transactions where parties need to establish clear communication and understanding before proceeding with detailed lease negotiations and due diligence.
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1. Letter Header: Date, recipient's name and address, and subject line clearly indicating this is a Letter of Intent for commercial space rental
2. Introduction: Identifies the parties and their roles (prospective tenant and landlord)
3. Property Details: Specific description and address of the commercial space intended to be leased
4. Proposed Terms: Key commercial terms including proposed rental rate, lease duration, and intended use of property
5. Timeline: Proposed timeline for negotiation, due diligence, and execution of formal lease agreement
6. Non-Binding Nature: Clear statement that this is a non-binding letter of intent except for specific provisions
7. Exclusivity Period: Period during which the landlord agrees not to negotiate with other potential tenants
8. Closing: Signature blocks for both parties and formal letter closing
1. Due Diligence Requirements: Specific requirements for property inspection, document review, and other investigations - include when significant due diligence is anticipated
2. Confidentiality Provisions: Terms regarding confidentiality of negotiations and information exchange - include for sensitive commercial transactions
3. Deposit Terms: Details of any good faith deposit - include when a deposit is being offered
4. Condition Precedents: Specific conditions that must be met before proceeding with the lease - include for complex transactions
5. Broker Representation: Declaration of any broker involvement and commission arrangements - include when brokers are involved
6. Improvement Allowance: Proposed terms for any tenant improvements or allowances - include when property modifications are anticipated
1. Floor Plan: Basic layout or floor plan of the intended space
2. Preliminary Space Plan: Proposed configuration or layout modifications, if any significant changes are planned
3. Property Photographs: Current photographs of the space, particularly for properties requiring renovation
4. Proposed Timeline Schedule: Detailed timeline for lease execution, fit-out, and occupation if complex scheduling is involved
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