The Letter Of Intent (Real Estate) is a crucial preliminary document in Indonesian property transactions, used when parties wish to formally express serious interest in a real estate deal while maintaining flexibility for detailed negotiations. It serves as a roadmap for the transaction, incorporating considerations specific to Indonesian property law, including the Basic Agrarian Law and foreign ownership restrictions. This document is typically used before committing to a full purchase agreement or lease, when parties have agreed on basic terms but need to conduct due diligence or negotiate detailed provisions. The LOI includes essential information such as property identification, basic commercial terms, proposed timeline, and any specific conditions required under Indonesian law. While mostly non-binding, it may contain certain binding provisions such as confidentiality or exclusivity clauses.
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1. Letterhead and Date: Official letterhead of the proposing party and date of the letter
2. Parties: Full legal names and addresses of both the potential buyer/lessee and seller/lessor
3. Subject Line: Clear indication that this is a Letter of Intent for real estate acquisition/lease
4. Background/Introduction: Brief context of the parties' discussions and purpose of the letter
5. Property Description: Detailed description of the real estate property in question, including address and registration details
6. Proposed Transaction: Basic structure of the proposed transaction (purchase, lease, etc.) and key commercial terms
7. Price/Consideration: Proposed purchase price or lease terms including payment structure
8. Timeline: Proposed schedule for due diligence, negotiations, and closing
9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific terms
10. Governing Law: Statement that Indonesian law governs the LOI
11. Signature Block: Space for signatures of authorized representatives from both parties
1. Exclusivity Period: Used when parties want to ensure exclusive negotiations for a specific period
2. Confidentiality: Include when sensitive information will be shared during negotiations
3. Due Diligence Process: Added when specific due diligence requirements need to be outlined
4. Deposit Terms: Include when an initial deposit or earnest money is part of the transaction
5. Broker/Agent Details: Required if real estate agents or brokers are involved
6. Conditions Precedent: Include when specific conditions must be met before proceeding
7. Cost Allocation: Used to specify how transaction costs will be divided
8. Foreign Investment Provisions: Required when the buyer/lessee is a foreign entity
1. Property Details Schedule: Detailed technical description of the property, including land certificates, building specifications, and exact boundaries
2. Initial Price Breakdown: Detailed breakdown of the proposed price structure and payment terms
3. Key Documentation List: List of essential documents required for due diligence and completion
4. Timeline Schedule: Detailed timeline of key dates and milestones for the proposed transaction
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Property
Residential Property
Industrial Property
Retail Property
Hospitality
Office Space
Manufacturing
Warehousing and Logistics
Mixed-use Development
Foreign Investment
Construction
Relevant Teams
Legal
Real Estate
Property Management
Business Development
Investment
Finance
Operations
Facilities Management
Corporate Development
Acquisitions
Risk Management
Relevant Roles
Real Estate Director
Property Development Manager
Chief Investment Officer
Legal Counsel
Corporate Lawyer
Real Estate Broker
Property Manager
Investment Analyst
Business Development Director
Asset Manager
Facilities Manager
Acquisition Manager
Real Estate Investment Manager
Commercial Director
Chief Financial Officer
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