Real Estate Loan Term Sheet Template

A term sheet for a real estate loan is a crucial document outlining the key terms and conditions of the loan agreement between a lender and a borrower. This template serves as a preliminary agreement that details the parameters of the loan, providing a basis for drafting the final loan documents. Here is a comprehensive real estate loan term sheet template to guide you through the process:

1. Basic Information

1.1. Lender:
Name: [Lender’s Name]
Address: [Lender’s Address]
Contact Information: [Lender’s Contact Information]

1.2. Borrower:
Name: [Borrower’s Name]
Address: [Borrower’s Address]
Contact Information: [Borrower’s Contact Information]

1.3. Property:
Address: [Property Address]
Legal Description: [Legal Description of Property]
Type of Property: [Type, e.g., Residential, Commercial]

2. Loan Details

2.1. Loan Amount:
Total Amount: [Loan Amount]
Currency: [Currency, e.g., USD]

2.2. Loan Term:
Start Date: [Start Date]
End Date: [End Date]
Total Duration: [Number of Years/Months]

2.3. Interest Rate:
Type: [Fixed/Variable]
Rate: [Interest Rate]%
Adjustment Frequency: [e.g., Annually, Semi-Annually]
Index: [For Variable Rates, e.g., LIBOR]

2.4. Repayment Schedule:
Frequency: [Monthly/Quarterly/Annually]
Principal and Interest: [Principal and Interest Payments]
Balloon Payment: [Yes/No, if applicable]

3. Fees and Costs

3.1. Origination Fee:
Amount: [Fee Amount]
Description: [Fee Description]

3.2. Closing Costs:
Amount: [Cost Amount]
Description: [Cost Description]

3.3. Prepayment Penalty:
Penalty: [Yes/No]
Details: [Prepayment Penalty Details, if applicable]

4. Collateral and Security

4.1. Collateral:
Description: [Collateral Description]
Value: [Collateral Value]
Insurance: [Insurance Requirements]

4.2. Security Interest:
Type: [First Lien/Second Lien, etc.]
Details: [Security Interest Details]

5. Covenants and Representations

5.1. Borrower Covenants:
Obligations: [List of Covenants and Obligations]
Compliance: [Compliance Requirements]

5.2. Representations and Warranties:
Borrower Representations: [List of Representations and Warranties]

6. Conditions Precedent

6.1. Documentation Required:
Documents: [List of Required Documents]
Submission Deadline: [Deadline for Submission]

6.2. Due Diligence:
Requirements: [Due Diligence Requirements]
Completion Deadline: [Deadline for Due Diligence]

7. Default and Remedies

7.1. Events of Default:
List: [List of Default Events]
Notification: [Notification Procedure]

7.2. Remedies:
Actions: [Remedies Available to Lender]
Procedures: [Procedures for Enforcement]

8. Miscellaneous

8.1. Governing Law:
Jurisdiction: [Applicable Jurisdiction]
Law: [Governing Law]

8.2. Dispute Resolution:
Method: [e.g., Mediation, Arbitration]
Details: [Dispute Resolution Details]

8.3. Confidentiality:
Agreement: [Confidentiality Agreement]
Terms: [Terms of Confidentiality]

8.4. Amendments:
Procedure: [Amendment Procedure]
Approval: [Approval Process for Amendments]

8.5. Notices:
Method: [Notice Method]
Addresses: [Notice Addresses]

Signature

Lender:
Name: [Lender’s Representative Name]
Title: [Lender’s Representative Title]
Date: [Date]

Borrower:
Name: [Borrower’s Representative Name]
Title: [Borrower’s Representative Title]
Date: [Date]

This template is a guide and should be customized to fit specific transactions and legal requirements. Always consult with a legal professional when preparing or reviewing real estate loan documents.

9. Additional Terms

9.1. Special Conditions:
Conditions: [Special Conditions, if any]

9.2. Other Provisions:
Provisions: [Additional Provisions]

Appendix

A. Definitions:
Definitions: [Definitions of Terms Used in the Term Sheet]

B. Exhibits:
Exhibits: [List of Exhibits, if any]

C. Schedules:
Schedules: [List of Schedules, if any]

D. Acknowledgment:
Acknowledgment: [Acknowledgment of Receipt and Understanding]