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(WB) Commercial Letters of Intent (LOIs) – 2 CE
October 24 @ 10:00 am - 12:00 pm
$15.00Instructor: $Avi S. Tryson, Esq.
$$
Early payment membership dues credits can be applied to this class if dues were paid by June 14th, 2023.
Most commercial purchases and leases begin with a LOI.
A commercial real estate (or CRE) letter of intent indicates a serious buyer’s interest in purchasing an income-generating commercial property. The commercial real estate buying process is expensive, time-consuming, and complicated, and letters of intent clarify and record the many elements of the exchange.
An LOI details all the major points of the real estate purchase or lease; it is not a binding document. Instead, it signifies the buyer is sincerely interested in making a purchase and has plans to negotiate in good faith. A commercial real estate broker will typically write an LOI, but the buyer can also draft one themselves.
In this class you will learn:
• Common terminology used in LOIs
• The importance of guaranties and security deposits
• How options to extend and termination options are structured
• What items are critical to include in the LOI and what items are ok to exclude from the LOI
• How to protect your commission
Letters of intent are important because they put the terms of a complicated transaction in writing. They also make difficult negotiations clearer and easier to navigate. In commercial real estate, an LOI can protect each party while they prepare to make a more formal arrangement in the near future.