The term "HoTs" is short for "Heads of Terms" (also known as "Letter of Intent" or basic tenancy terms). This document serves as an agreement on the basic terms between the two parties before entering into a fully legally binding contract.
In commercial real estate, the HoTs document is typically used during the lease negotiation phase. It contains key points of the agreement between the landlord and the tenant, such as the length of the lease, the amount of rent, the frequency of payment, responsibilities for maintenance and repairs, the possibility of renewing the lease and other important terms.
Although HoTs are generally not legally binding (with the exception of some specific points such as confidentiality clauses), they provide an important framework for further negotiation and preparation of the tenancy agreement. At the same time, it gives both parties the confidence that they have the same understanding of the main points of the agreement before embarking on the production of expensive and time-consuming legal documents.
RFI (Request for information)
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