Once a property has been found and negotiations begun between the tenant and the landlord, the estate agent will prepare an offer letter. The letter should be signed by both parties, is subject to contract and details all the main terms and conditions of the tenancy including rent, term, commencement date and any decoration or renovation works necessary. Sometimes the parties may wish to sign the offer letter as binding contract.
Offer to lease
An agreement that binds the lessor to continuing negotiations in good faith once a qualified tenant has been found, until all negotiating points have been covered. In effect, it takes the space off the market during the negotiating period.
A term in a lease for the rights either tenant or landlord may have with respect to one another, usually with stipulations regarding timing of those rights.