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LOI Commercial (Real Estate) for Indonesia

LOI Commercial (Real Estate) Template for Indonesia

A Letter of Intent (LOI) for commercial real estate transactions in Indonesia is a preliminary document that outlines the proposed terms and conditions for a property transaction. Operating under Indonesian law, particularly the Civil Code and Basic Agrarian Law, this document serves as a framework for negotiations while typically maintaining a non-binding nature except for specific provisions such as confidentiality and exclusivity. The document addresses key aspects including property details, commercial terms, due diligence requirements, and proposed timeline, while considering Indonesian-specific requirements for property ownership, land use rights, and investment regulations.

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What is a LOI Commercial (Real Estate)?

The Commercial Real Estate Letter of Intent (LOI) is a crucial preliminary document in Indonesian property transactions, used to establish the framework for negotiations between parties interested in commercial real estate deals. This document type is particularly important in the Indonesian context due to the country's unique land title system and specific requirements for property transactions. The LOI Commercial (Real Estate) serves as a roadmap for the transaction, outlining key commercial terms, conditions, and timelines while typically maintaining a non-binding nature except for specific provisions. It's commonly used before proceeding to definitive agreements, allowing parties to align their expectations and commence due diligence while addressing crucial aspects of Indonesian property law and investment regulations. The document is essential in both domestic and foreign investment scenarios, considering Indonesia's foreign ownership restrictions and investment requirements.

What sections should be included in a LOI Commercial (Real Estate)?

1. Date and Addresses: Opening with proper date and addresses of both parties

2. Subject Line: Clear identification of the property and transaction type

3. Introduction: Brief introduction identifying the parties and their roles

4. Transaction Overview: High-level description of the proposed transaction

5. Property Details: Specific details of the property including address, size, and current status

6. Commercial Terms: Key commercial terms including proposed price, payment structure, and basic conditions

7. Timeline: Proposed timeline for due diligence, negotiations, and completion

8. Due Diligence: Outline of the due diligence process and requirements

9. Non-Binding Nature: Clear statement about which provisions are non-binding

10. Closing: Signature blocks and formal closing of the letter

What sections are optional to include in a LOI Commercial (Real Estate)?

1. Deposit Terms: Include when an initial deposit or earnest money is required

2. Exclusivity Period: Include when parties want exclusive negotiation rights for a specified period

3. Broker Representation: Include when real estate brokers are involved in the transaction

4. Governing Law Statement: Include when transaction involves international parties

5. Language Declaration: Include when document might be translated to Indonesian

6. Conditions Precedent: Include when there are specific conditions that must be met before proceeding

7. Cost Allocation: Include when there's a need to specify who bears various transaction costs

What schedules should be included in a LOI Commercial (Real Estate)?

1. Property Description Schedule: Detailed description of the property including land certificates, building specifications, and current encumbrances

2. Commercial Terms Sheet: Detailed breakdown of proposed commercial terms including price, payment schedule, and key conditions

3. Due Diligence Checklist: List of required documents and information for due diligence

4. Timeline Schedule: Detailed timeline with specific milestones and deadlines

5. Required Approvals List: List of necessary governmental and regulatory approvals needed for the transaction

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions



































Clauses


























Relevant Industries

Commercial Real Estate

Retail

Office Space

Industrial

Hospitality

Mixed-Use Development

Logistics

Healthcare Facilities

Educational Facilities

Data Centers

Relevant Teams

Legal

Real Estate

Investment

Finance

Business Development

Operations

Risk Management

Facilities Management

Corporate Development

Compliance

Relevant Roles

Real Estate Director

Property Development Manager

Investment Manager

Chief Financial Officer

Legal Counsel

Commercial Director

Asset Manager

Acquisitions Manager

Property Portfolio Manager

Business Development Director

Real Estate Analyst

Corporate Real Estate Manager

Facilities Manager

Risk Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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