By signing a letter of intent especially in a complex transaction you know earlier on that you and the seller agree on the major terms of the deal. Obviously, it is better to know this before you put time and expense into preparing the contract itself.
A word of caution, however: The letter of intent should state specifically that it is not a binding agreement. Only the contract itself should be binding. The devil is in the details; you want to be free to get out of the deal if, later, you and the seller cannot reach agreement on the details of the contract.
Consider having a lawyer draft or at least review the letter of intent.
[addsig]
This letter is being written to convey my sincere interest in purchasing your above-mentioned property.
I am willing to purchase the property under the following terms and conditions:
Purchase Price $0.00
Down Payment $0.00
Balance Payable $0.00
If this offer is acceptable, I will give you $0.00 earnest money when we execute a contract and the balance of the Down Payment when the transaction closes.
I look forward to a prompt favorable response from you so we can draw-up a contract and close at a mutually agreeable time.
Hey John,
Will this letter of intent keep the seller from accepting an offer from some one else? What I am asking is , will it tie up the property until you get ducks in line? Or is a formal contract needed to tie up the property?
By signing a letter of intent especially in a complex transaction you know earlier on that you and the seller agree on the major terms of the deal. Obviously, it is better to know this before you put time and expense into preparing the contract itself.
A word of caution, however: The letter of intent should state specifically that it is not a binding agreement. Only the contract itself should be binding. The devil is in the details; you want to be free to get out of the deal if, later, you and the seller cannot reach agreement on the details of the contract.
Consider having a lawyer draft or at least review the letter of intent.
[addsig]
Dear:
This letter is being written to convey my sincere interest in purchasing your above-mentioned property.
I am willing to purchase the property under the following terms and conditions:
Purchase Price $0.00
Down Payment $0.00
Balance Payable $0.00
If this offer is acceptable, I will give you $0.00 earnest money when we execute a contract and the balance of the Down Payment when the transaction closes.
I look forward to a prompt favorable response from you so we can draw-up a contract and close at a mutually agreeable time.
Sincerely,
[addsig]
Hey John,
Will this letter of intent keep the seller from accepting an offer from some one else? What I am asking is , will it tie up the property until you get ducks in line? Or is a formal contract needed to tie up the property?
You will be better off doing a formal contract if you are looking to tie up a subject property.
do you know where I can find a sample letter for residential or comercial?