The Non-Binding Letter of Intent to Lease is a crucial preliminary document in Nigerian real estate transactions, used when parties wish to formally express their interest in entering into a lease arrangement while maintaining flexibility during negotiations. This document is typically used before committing to a binding lease agreement, allowing parties to outline key commercial terms, conduct due diligence, and establish a framework for further negotiations. While subject to Nigerian property laws and regulations, including the Land Use Act of 1978 and state-specific property legislation, the document's non-binding nature provides protection for both parties during the preliminary stages of lease discussions. It serves as a roadmap for the eventual lease agreement, capturing essential terms such as property details, proposed rental terms, intended use, and timeline for finalizing the formal lease.
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1. Letter Header and Date: Formal business letter header including sender's details, recipient's details, and date
2. Subject Line: Clear identification of the document as a Non-Binding Letter of Intent to Lease
3. Introduction: Identification of the parties and their roles (prospective landlord/tenant)
4. Property Description: Detailed description of the property proposed to be leased
5. Proposed Terms: Overview of key lease terms including proposed rent, duration, and intended use
6. Timeline: Proposed timeline for negotiation, due diligence, and execution of formal lease
7. Non-Binding Statement: Clear statement that the letter is non-binding and for discussion purposes only
8. Confidentiality: Statement regarding confidentiality of discussions and proposed terms
9. Closing: Formal closing, signature blocks for both parties
1. Due Diligence Process: Include when specific due diligence requirements or process needs to be outlined
2. Deposit Terms: Include when discussing any preliminary deposits or earnest money
3. Exclusivity Period: Include when parties agree to negotiate exclusively for a specific period
4. Conditions Precedent: Include when there are specific conditions that must be met before proceeding with formal lease
5. Broker Representation: Include when real estate brokers or agents are involved in the transaction
6. Cost Allocation: Include when there's a need to specify who bears the costs of lease preparation and related expenses
1. Property Details Schedule: Detailed description of the property including address, dimensions, and relevant features
2. Proposed Commercial Terms: Detailed breakdown of proposed financial terms, including rent, service charges, and other payments
3. Preliminary Space Plan: Basic layout or floor plan of the property, if relevant
4. Timeline Schedule: Detailed timeline for key milestones in the lease negotiation and execution process
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Relevant Teams
Real Estate
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Finance
Operations
Facilities Management
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Relevant Roles
Real Estate Manager
Property Manager
Facilities Manager
Chief Financial Officer
Legal Counsel
Business Development Manager
Operations Director
Real Estate Director
Procurement Manager
Commercial Director
Head of Expansion
Regional Manager
Corporate Services Manager
Real Estate Broker
Property Lawyer
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