A Letter of Intent For Proposed Development is commonly used in the early stages of property development projects in England and Wales when parties wish to formalize their preliminary discussions and intentions. It serves as a roadmap for negotiations while allowing parties to conduct due diligence and further develop their plans. The document typically includes key commercial terms, timeline expectations, exclusivity provisions, and confidentiality requirements. While not usually creating a binding obligation to proceed with the development, certain provisions such as confidentiality and exclusivity are often made explicitly binding.
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1. Parties: Identification of the parties involved in the development proposal
2. Background/Recitals: Context of the proposed development and purpose of the LOI
3. Project Description: Detailed description of the proposed development
4. Duration and Timeline: Period for which the LOI is valid and key milestone dates
5. Initial Terms: Key commercial terms and conditions being proposed
6. Binding/Non-binding Statement: Clear statement of which provisions are intended to be legally binding
7. Signature Block: Execution section for all parties
1. Exclusivity: Period during which parties agree not to negotiate with others
2. Confidentiality: Terms regarding confidential information sharing
3. Cost Allocation: How preliminary costs will be handled
4. Break Clauses: Conditions under which parties can terminate discussions
5. Due Diligence: Framework for information sharing and verification
1. Site Plan: Drawings or plans showing the development site
2. Initial Development Program: Preliminary timeline of development phases
3. Key Commercial Terms: Detailed breakdown of proposed commercial arrangements
4. Due Diligence Requirements: List of required surveys, reports and investigations
5. Planning Requirements: Summary of known planning obligations and requirements
Relevant legal definitions
Proposed Development
Property
Site
Development Period
Planning Permission
Exclusivity Period
Confidential Information
Business Day
Completion Date
Development Costs
Due Diligence
Planning Authority
Professional Team
Permitted Use
Development Agreement
Material Adverse Change
Necessary Consents
Working Drawings
Specification
Binding Elements
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
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