The Importance of Developing a Term Sheet
A Term Sheet usually is an unenforceable expression of intent but a valuable tool in negotiating a favorable property sales agreement or lease. A Term Sheet emphasizes critical elements in negotiating a sales agreement or lease. Once the landlord submits the sales agreement or lease offer in writing, compare all offers you receive. In negotiating term sheets, it is essential to set limits. If you need expansion or renewal options, be sure your prospective landlord or property owner addresses your concerns in their term sheet. Although not binding, the Term Sheet request may result in the owner retracting the offer. However, the Term Sheet is a valuable negotiating tool because it clarifies the deal. A Property owner can face a dilemma if there is a missed opportunity to close because of their resistance to negotiate. The owner’s ability to turn over space can be adversely affected by the long-term closing prospects if the owner gains a reputation for retracting or renegotiating term sheets.