A commercial real-estate transaction is one that contains many stages and moving parts that can be complex and tough to navigate without the right knowledge and preparation. In the context of a commercial real-estate transaction, a letter of intent (“LOI”) is an example of one of these stages that require specific knowledge and preparation. A LOI is a document that outlines the major deal terms between parties before the consummation of a final deal.
A party may want the LOI to be binding or non-binding, depending on the situation. Whichever the objective may be, it is important that the LOI properly express a party’s intent. One should be careful though, as without proper preparation and knowledge on the drafting of LOIs, a party may unintentionally bind themselves through the words of their letter of intent and actions surrounding that document. Finding oneself in a situation where you are bound to terms which do not rightfully express your intent or desires can serve the opposite purpose of that for which it was intended. Fortunately, it is a situation that can be easily avoided. By hiring the right broker and attorney, one can be confident that a letter of intent will correctly convey one’s intentions. It is important before drafting or signing a LOI, one finds a broker and an attorney that specializes in the transaction one wishes to conduct. If the commercial transaction is not sizeable, one should also make sure that the chosen professionals will still treat that transaction as a top priority.
There are many components and stages to commercial real-estate transactions, which require careful preparation and attention. To best make sure this transaction goes as smoothly as possible and to make sure all your bases are covered, make sure to seek the right real estate broker and law firm that will give your transaction the attention and expertise it deserves.
Joseph M. Vigliotti is Of Counsel at Bertone Piccini LLP and provides strategic counseling to clients in the areas of commercial real estate and financing transactions.