The Commercial Lease Letter of Intent is a crucial preliminary document in Belgian commercial property transactions, typically used when parties have reached initial agreement on key commercial terms but before committing to a formal lease agreement. This document helps structure negotiations and outlines basic terms while providing a framework for due diligence and further discussions. Under Belgian law, while the Letter of Intent is generally non-binding, certain provisions (such as confidentiality and exclusivity) can be made explicitly binding. The document should align with the Belgian Commercial Lease Act and consider regional variations in property regulations across Brussels-Capital, Flanders, and Wallonia. It serves as a roadmap for the subsequent lease negotiation process, outlining proposed terms, conditions, and timelines while protecting both parties' interests during the preliminary phase of the transaction.
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1. Identification of Parties: Full legal names and addresses of both the prospective landlord and tenant
2. Property Description: Detailed description of the commercial property, including exact address and relevant specifications
3. Commercial Terms: Key commercial terms including proposed rent, duration, and intended use of the property
4. Timeline: Proposed timeline for negotiation, due diligence, and execution of the final lease agreement
5. Non-Binding Nature: Clear statement that the LOI is non-binding except for specifically identified provisions
6. Binding Provisions: Identification of which provisions are binding (typically confidentiality, exclusivity, and governing law)
1. Due Diligence Requirements: Specific requirements for property inspection and document review, included when detailed due diligence is anticipated
2. Exclusivity Period: Period during which the landlord agrees not to negotiate with other parties, included when exclusivity is desired
3. Deposit Terms: Details of any proposed security deposit or bank guarantee, included when early agreement on security is needed
4. Cost Allocation: Division of transaction costs and professional fees, included when parties want to clarify cost responsibilities early
5. Break Options: Proposed early termination rights, included when flexibility in the final lease term is desired
6. Conditions Precedent: Specific conditions that must be met before proceeding to final lease, included for complex transactions
1. Floor Plan: Preliminary floor plan or layout of the commercial property
2. Technical Specifications: Basic technical details of the property including surface area, facilities, and installations
3. Timeline Schedule: Detailed schedule of key dates and deadlines for negotiation and completion
4. Initial Works Schedule: Preliminary list of any tenant improvements or landlord works to be included in final lease
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Food and Beverage
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Relevant Teams
Legal
Real Estate
Facilities Management
Finance
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Property Management
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Relevant Roles
Real Estate Director
Commercial Property Manager
Facilities Manager
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Chief Financial Officer
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Expansion Director
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