letter of intent

when sould the letter of intent be in your hands?
In Selling Property - Asked by Donna S. - Apr 20, 2011
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Answer(s)

Ron G.
Broker/Agent
Lafayette, LA

The letter of intent is usually a preemptive non binding agreement mainly used to find if a buyer and seller can agree on some terms before going into a formal purchase agreement. The letter of intent is usually tendered at the time an interested buyer is ready to make a commitment but wants make sure some terms can generally be agreed to such as price, terms of agreement, etc.

Apr 20, 2011
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Matthew C.
Broker/Agent
Indianapolis, IN

When negotiating a lease I recommend starting with a LOI from the start. Just be carefull to state it is non binding if you dont intend for it to be because the law is gray in that area.

Apr 20, 2011
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NATHAN B.
Broker/Agent
Ontario, CA

See link below for additional insight about letters of intent or "LOIs" , I think it will help you refine your question to more specifics as well. The basics are simple the strategies for using one are sometimes complex and there are risks involved.

Apr 21, 2011
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Elaine M H.
Broker/Agent
Depew, NY

What Ron states is exactly right! I utilize LOI on a regular basis...cuts down on a lot of confusion later in the transaction and definitely saves a lot of paperwork and time.

Apr 21, 2011
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Joseph S.
Broker/Agent
Pennsville, NJ

Ensure that the Letter of Intent (LOI) specifies that it is in fact, non-binding, and even better, not even an agreement to negotiate in good faith. (Please consult an attorney). Courts have held that unsophisticated non-binding letters of intent can in fact bind the parties to make a good faith effort to negotiate a contract. The LOI should be in Seller's hands immediately after it is signed by Buyer (usually 1st to sign). LOI should be prepared--by either party--immediately after there is a verbal agreement as to price, terms, and other [business] conditions. Then toss the bilaterally-signed LOI immediately to an attorney to draft actual contract.

Apr 21, 2011
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Chris R.
Broker/Agent
Denton, TX

An LOI - for sale or lease - is simply a non-binding statement of general terms and conditions that both parties negotiate and agree upon and from there a full contract (sale or lease) is prepared and entered into. An LOI would be offered by the buyer or tenant to move forward their interest in the seller's property.

Apr 23, 2011
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