Document background
A Letter Of Intent To Purchase Commercial (Real Estate) is a crucial preliminary document used in Indonesian commercial property transactions to establish the initial framework for negotiations between parties. It is typically employed when a potential buyer has serious interest in a commercial property but needs to conduct due diligence and finalize negotiations before proceeding to a binding purchase agreement. The document is drafted in accordance with Indonesian property laws, including the Basic Agrarian Law and relevant investment regulations, particularly important when foreign investors are involved. While primarily non-binding, it serves to document key commercial terms, proposed timeline, and specific binding provisions such as confidentiality and exclusivity periods. This document helps parties align their expectations and provides a roadmap for the transaction while protecting both parties' interests during the negotiation phase.
