The Letter of Intent to Lease is commonly used in Belgian 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 formalize their intentions and establish a framework for further negotiations. The document outlines essential elements such as property details, proposed rental terms, timelines, and any specific conditions, while maintaining a generally non-binding nature except for specific provisions like confidentiality and exclusivity. Under Belgian law, this document must be carefully drafted to avoid unintentionally creating a binding lease agreement, while still providing sufficient detail to guide the negotiation process. It's particularly important in complex commercial lease situations where detailed due diligence and negotiation periods are required before finalizing a formal lease agreement.
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1. Date and Parties: Identification of the prospective landlord and tenant, including full legal names, addresses, and any relevant registration numbers
2. Property Description: Detailed description of the property intended to be leased, including its address and relevant characteristics
3. Commercial Terms: Key commercial terms including proposed rent, lease duration, and intended use of the property
4. Timeline: Proposed timeline for negotiations, due diligence, and target date for executing the final lease agreement
5. Non-Binding Nature: Clear statement that this is a non-binding letter of intent, except for any specifically binding provisions
6. Confidentiality: Statement regarding the confidential nature of negotiations and any shared information
7. Exclusivity Period: Period during which the landlord agrees not to negotiate with other potential tenants
8. Signature Block: Space for signatures of both parties and date of signing
1. Due Diligence Process: Details of the proposed due diligence process, including access to the property and documentation - include when significant due diligence is required
2. Cost Allocation: Statement about who will bear the costs of negotiations and documentation - include when costs are expected to be significant
3. Conditions Precedent: Any conditions that must be met before proceeding with the lease - include when specific requirements must be fulfilled
4. Break Options: Proposed terms for early termination rights - include when early termination might be needed
5. Improvements and Alterations: Preliminary agreement on any modifications to the property - include when significant modifications are anticipated
6. Deposit/Bank Guarantee: Proposed security arrangements - include when specific security requirements are known
1. Floor Plan: Preliminary floor plan or layout of the property to be leased
2. Photos: Current photographs of the property
3. Initial Terms Sheet: Summary of key commercial terms in table format
4. Property Specifications: Technical details and specifications of the property
5. Timeline Schedule: Detailed timeline for the negotiation process and key milestones
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Real Estate
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Relevant Teams
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Operations
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Chief Executive Officer
Chief Financial Officer
Real Estate Director
Facilities Manager
Property Manager
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Real Estate Agent
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Corporate Real Estate Manager
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