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Write a Letter of Intent to purchase commercial property for XYZ Company

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Letter of Intent to Purchase Commercial Property

[Your Full Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]

[Date]

[Seller's Full Name]
[Seller's Address]
[City, State, ZIP Code]

Re: Letter of Intent to Purchase Commercial Property

Dear [Seller's Full Name],

I hope this letter finds you well. I am writing to express the intent of XYZ Company ("Buyer") to purchase the commercial property located at [Property Address] ("Property") from [Seller's Full Name] ("Seller"). This Letter of Intent ("LOI") outlines the preliminary terms and conditions under which Buyer proposes to acquire the Property. This LOI is intended to serve as a basis for the preparation of a formal and binding Purchase and Sale Agreement ("Agreement").

1. Purchase Price

The proposed purchase price for the Property is [Insert Purchase Price] Kenyan Shillings (KES), subject to adjustments as may be agreed upon in the final Agreement.

2. Deposit

Upon execution of the Agreement, Buyer shall deposit [Insert Deposit Amount] KES as earnest money into an escrow account. This deposit will be applied towards the purchase price at closing.

3. Due Diligence Period

Buyer shall have a period of [Insert Number of Days] days from the date of execution of this LOI ("Due Diligence Period") to conduct inspections, review title documents, and perform any other due diligence activities deemed necessary. During this period, Buyer shall have the right to terminate the Agreement if any issues arise that are unsatisfactory to Buyer.

4. Closing Date

The closing of the transaction ("Closing") shall occur on or before [Insert Closing Date], or such other date as may be mutually agreed upon by Buyer and Seller.

5. Contingencies

The purchase of the Property is contingent upon the following:

Satisfactory completion of Buyer's due diligence.
Obtaining financing on terms acceptable to Buyer.
Receipt of all necessary approvals and permits from relevant authorities.

6. Representations and Warranties

Seller shall provide customary representations and warranties regarding the Property, including but not limited to, clear title, absence of environmental hazards, and compliance with all applicable laws and regulations.

7. Confidentiality

Both parties agree to keep the terms of this LOI and any related negotiations confidential, except as required by law or as necessary to obtain financing or other approvals.

8. Non-Binding Nature

This LOI is not intended to be a legally binding agreement, except for the confidentiality provision and any other provisions expressly stated to be binding. The parties shall not be legally bound until a formal Agreement has been executed by both Buyer and Seller.

9. Governing Law

This LOI shall be governed by and construed in accordance with the laws of the Republic of Kenya.

10. Expiration

This LOI shall expire if not executed by both parties on or before [Insert Expiration Date].

We look forward to working with you to finalize the terms of this transaction. Please indicate your acceptance of the terms outlined in this LOI by signing below and returning a copy to us.

Sincerely,

[Your Full Name]
[Your Title]
XYZ Company

Accepted and Agreed:

[Seller's Full Name]
[Seller's Title]
[Seller's Company]

Date: [Insert Date]

TLDR

This Letter of Intent outlines the preliminary terms for XYZ Company's proposed purchase of a commercial property, including the purchase price, deposit, due diligence period, closing date, contingencies, and confidentiality provisions. It is not legally binding except for specific provisions and is governed by Kenyan law.

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