A written, non-binding agreement between and landlord and a potential tenant that confirms the intent of both parties to negotiate and sign a lease or purchase agreement and outlines the main commercial and other terms agreed between the parties to serve as the basis of the lease or sale. Usually a Letter of Intent is valid for 30 days – meaning that within 30 days the parties intend to take all steps necessary to sign the legal binding lease or purchase agreement. The steps include negotiating the texts of the legally binding documents; completing Due Diligence (each party provides to the other proof that they have the rights to make their commitments under the agreements); receiving corporate authorizations for the transaction; clarifying relevant technical requirements and technical suitability of the space. Sometimes the parties will extend the 30 day period to allow for completion of the steps.
For the 30 day period the landlord commits to refrain from offering the space to other companies and the tenant commits to not consider or negotiate on spaces in other properties.