How to Draft RICS Heads of Terms in Minutes with AI

Every commercial deal starts with heads of terms. Whether it is a new letting in the City, an investment acquisition in the West End, or a lease renewal in Canary Wharf — the HoTs set the frame that solicitors, surveyors, and principals work from.

The problem? Most brokers draft them from scratch every time. Copy a previous set, change the names, miss a clause, send it late. The client's solicitor sends back a 15-point query list and the negotiation loses momentum.

What RICS-aligned heads of terms should include

A professional set of HoTs — one a solicitor would respect — covers:

Parties and property — full legal names, registered address, description of the demise including floor area (NIA or GIA, state which), and title number if known.

Term and commencement — proposed start date, lease length, and whether conditional on planning, board approval, or fit-out completion.

Rent and review — headline rent, basis (per sq ft or per annum), rent review pattern (typically five-yearly, upward only for UK), and any indexation mechanism.

Break clauses — mutual or tenant-only, timing, notice period, conditions (vacant possession, no material breaches, up-to-date rent).

Rent-free and incentives — months of rent-free, whether subject to clawback on early break, contribution to fit-out, or stepped rent arrangements.

Repair and insurance — FRI (full repairing and insuring) or IRI (internal repairing and insuring), schedule of condition if limiting dilapidations exposure, and cap on service charge if applicable.

User clause and alienation — permitted use class (Class E for most offices), assignment and subletting rights, landlord consent provisions.

Subject to contract — essential phrasing to prevent inadvertent binding agreements.

Where AI fits the workflow

The bottleneck is not knowledge — experienced brokers carry these terms in their heads. The bottleneck is typing time and formatting.

AI tools like Rubo turn a structured voice note or a quick WhatsApp message into a formatted HoTs document. You dictate the deal points, the AI populates a RICS-aligned template, and you review and send.

The first draft takes under five minutes. Your solicitor receives a clean, professional document instead of a hasty email. The deal moves faster.

What to check before sending

AI drafts are first passes, not final documents. Always verify:

• Correct party names and registered company numbers
• Rent review mechanism matches the agreed commercial terms
• Break clause conditions are precisely stated — ambiguity here creates costly disputes
• Schedule of condition provisions are flagged if the tenant wants to limit dilapidations exposure
• Subject to contract wording is present and prominent

The ROI for a CRE broker

If you draft three sets of HoTs per week and each currently takes 45 minutes, that is over 100 hours per year on first-draft document prep. At commercial billing rates, the time cost is significant — and the opportunity cost (deals that stall because HoTs arrive late) is even higher.

AI does not replace your judgment on deal terms. It replaces your typing.