Document background
A Letter of Intent For Purchase of Commercial Property is a crucial preliminary document in South African commercial real estate transactions. It is typically used when a prospective buyer wishes to formally express their serious interest in purchasing commercial property while establishing a framework for negotiations. The document outlines key commercial terms, including proposed purchase price, payment structure, and due diligence requirements, while maintaining its generally non-binding nature. Under South African law, this document serves as a precursor to the formal sale agreement, helping parties align their expectations and commence detailed negotiations while addressing jurisdiction-specific requirements such as compliance with the Alienation of Land Act, property registration procedures, and relevant commercial property regulations.
