Ask a lawyer:
Draft a Letter of Intent to Lease for a commercial tenant

Table of Contents

1. Introduction

2. Letter of Intent to Lease

3. Conclusion

Introduction

This response will provide a draft Letter of Intent to Lease for a commercial tenant in Kenya, adhering to the legal framework and relevant provisions of the Kenyan law. The response will be based on the following sources:

• The Land Act, 2012

• The Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, 1950

• The Law of Contract Act, 2015

Letter of Intent to Lease

[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address]

[Date]

[Landlord Name/Company Name] [Landlord Address]

RE: Letter of Intent to Lease Commercial Premises at [Address of Premises]

Dear [Landlord Name],

This letter constitutes a Letter of Intent to Lease (the "Letter") for the commercial premises located at [Address of Premises] (the "Premises"). This Letter is not a binding agreement, but rather an expression of our intent to lease the Premises subject to the terms and conditions outlined below.

1. Premises:

• The Premises consist of [Describe the Premises, including square footage, number of floors, and any specific features].

• The Premises are to be used for [State the intended use of the Premises].

2. Lease Term:

• The proposed lease term is [Number] years, commencing on [Start Date] and ending on [End Date].

3. Rent:

• The proposed monthly rent is [Amount] Kenyan Shillings ([Currency]).

• The rent will be payable in advance on the [Day] of each month.

4. Security Deposit:

• A security deposit of [Amount] Kenyan Shillings ([Currency]) will be paid upon execution of the formal lease agreement.

• The security deposit will be refunded within [Number] days of the termination of the lease, subject to deductions for any unpaid rent, damages, or other breaches of the lease agreement.

5. Other Terms:

• The parties agree to negotiate and finalize a formal lease agreement within [Number] days of the date of this Letter.

• The formal lease agreement will include, but not be limited to, the following provisions:

  • Maintenance and Repairs: The Landlord will be responsible for [Specify the Landlord's responsibilities for maintenance and repairs].

  • Insurance: The Tenant will be responsible for [Specify the Tenant's responsibilities for insurance].

  • Utilities: The Tenant will be responsible for [Specify the Tenant's responsibilities for utilities].

  • Default and Termination: The lease agreement will outline the consequences of default by either party and the procedures for termination of the lease.

  • Governing Law: The lease agreement will be governed by the laws of Kenya.

6. Conditions Precedent:

• This Letter is subject to the following conditions precedent:

  • The Landlord providing satisfactory evidence of ownership of the Premises.

  • The Tenant obtaining all necessary permits and licenses for the intended use of the Premises.

7. Binding Agreement:

• This Letter is not a binding agreement and does not create any legal obligations on either party.

• A formal lease agreement will be executed by both parties to formalize the terms of the lease.

8. Acceptance:

• Please indicate your acceptance of this Letter of Intent by signing and returning a copy of this Letter to us within [Number] days of the date of this Letter.

Sincerely,

[Your Signature]

[Your Printed Name]

[Your Title]

[Your Company Name]

[Your Phone Number]

[Your Email Address]

Conclusion

This draft Letter of Intent to Lease provides a framework for negotiating a formal lease agreement for commercial premises in Kenya. It is important to note that this is a sample letter and may need to be modified to reflect the specific circumstances of each transaction. It is highly recommended to consult with a legal professional to ensure that the Letter of Intent and the subsequent lease agreement are drafted in accordance with Kenyan law and protect the interests of both the Landlord and the Tenant.