Letter Of Intent
Has anyone used a letter of intent? Can it be used as an offer, because that;s what iam doing.
Would the next step be to sign purchase agreement, but be able to assign..............have investor(S) look at your property and close deal within the required time frame. The fee is the spread is my fee. Can this be done without a real estate licensce?
Thanks in advance
Kimtd,
Most that I know, including myself, use the LOI to get the "big picture" things on the table and out of the way. These would include the purchase price; financing terms (including any request for a seller held 2nd); inspection/due diligence period; financing period and time till close of escrow; earnest money deposit amount; how long till the purchase agreement will be drawn up and presented; who will be paying brokerage fees and closing costs.
All of the other details and the minutia that becomes a part of many of the things I listed above will be laid out in detail in the purchase agreement.
As Commercial King mentioned previously, the LOI is typically not binding on either party, if accepted it is more of a good faith or handshake type of agreement. But there is nothing stopping a seller from taking a better offer that comes along between LOI and purchase agreement with you. Its not necessarily good business but it is not a breach of any kind.
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Shawn Scarlata
Commercial Property Acquisitions
Blueline Property Group, LLC[ Edited by commercialking on Date 05/21/2007 ]
REF: Letter Of Intent
In order to save some of us the trouble of trying to format, compose, make a letter of intent could one of you gentlemen let me and others know where we might get a boilerplate sample of a LOI
REF: Letter Of Intent
In order to save some of us the trouble of trying to format, compose, make a letter of intent could one of you gentlemen let me and others know where we might get a boilerplate sample of a LOI