Document background
A Letter Of Intent To Purchase Commercial (Real Estate) is a crucial preliminary document in South African commercial property transactions, serving as a formal expression of interest from a potential buyer to a property owner. This document is typically used when a serious buyer has identified a commercial property of interest but requires additional time and information before proceeding to a formal sale agreement. It outlines key commercial terms including proposed purchase price, payment structure, and due diligence requirements, while generally remaining non-binding except for specific provisions. In the South African context, this document must consider various legislative requirements including the Alienation of Land Act, Property Practitioners Act, and relevant commercial property regulations. It serves as a foundation for subsequent negotiations and helps secure exclusivity while detailed investigations and formal documentation are undertaken.
