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The Letter of Intent For Purchase Of Commercial Property is a crucial preliminary document used in Hong Kong's commercial real estate market when a potential buyer wishes to formally express their interest in purchasing a commercial property and document the basic terms of the proposed transaction. This document is typically used after initial negotiations but before the formal due diligence process and detailed contract negotiations begin. It outlines key commercial terms including property details, proposed purchase price, payment structure, exclusivity period, and conditions precedent. While predominantly non-binding, it may contain certain binding provisions such as confidentiality and exclusivity clauses. The document must comply with Hong Kong's property and contract laws, particularly the Conveyancing and Property Ordinance (Cap. 219) and related regulations. It serves as a important stepping stone towards the formal Sale and Purchase Agreement and helps parties align their expectations and commitments early in the transaction process.
