A Letter Of Intent Lease Proposal is commonly used in the Malaysian real estate market as an initial step in the commercial leasing process. This document is typically issued when a prospective tenant has identified a suitable property and wishes to formally express their interest while outlining proposed terms. It serves as a framework for future negotiations, covering crucial aspects such as rental rates, lease duration, and specific conditions, while operating within the Malaysian legal framework, particularly the Contracts Act 1950 and National Land Code 1965. While predominantly non-binding, it demonstrates serious intent and can include binding provisions for certain aspects like confidentiality or exclusivity periods.
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1. Letter Header: Date, recipient's full name and address, and sender's details
2. Subject Line: Clear identification of the document as a Letter of Intent for Lease Proposal
3. Opening Statement: Introduction identifying the parties and expressing interest in leasing the specific property
4. Property Details: Precise description of the property including address and relevant details
5. Key Commercial Terms: Proposed rental rate, lease term, commencement date, and payment terms
6. Proposed Use: Intended use of the property and any specific requirements
7. Timeline: Proposed timeline for negotiation, due diligence, and execution of formal lease
8. Non-Binding Statement: Clear statement that the LOI is non-binding except for specific clauses
9. Closing and Signature: Formal closing, signature blocks for both parties
1. Exclusivity Period: Proposed period during which the landlord will not negotiate with other parties
2. Conditions Precedent: Any specific conditions that must be met before proceeding with the formal lease
3. Security Deposit: Details of any proposed security deposit or bank guarantee
4. Fit-out Requirements: Any specific tenant improvement or fit-out requirements
5. Operating Expenses: Proposed split of operating expenses and utilities
6. Broker Statement: If applicable, acknowledgment of broker involvement and commission arrangements
1. Property Plan: Floor plan or site plan of the proposed lease premises
2. Preliminary Terms Sheet: Detailed breakdown of commercial terms in table format
3. Photographs: Current photographs of the property if relevant
4. Proposed Timeline: Detailed timeline for negotiation and execution process
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Finance
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Real Estate Manager
Property Manager
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Chief Financial Officer
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Corporate Real Estate Manager
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Real Estate Broker
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