What Are Your Intentions? Drafting and Negotiating Letters of Intent
Nov 24, 2015 | Article
Written by Candace Cooper
(The Six-Minute Commercial Leasing Lawyer 2015)
Your purchaser client has been introduced to a seemingly perfect property and wants to put in an offer to purchase and then start planning its financing or entice joint venture partners. To show the potential vendor that the potential purchaser is committed, a real estate agent puts together a letter of intent (LOI). that LOI includes language stating that the property is being sold on an as-is basis, and contemplates a short due diligence period, both of which should sound great to the potential vendor. The LOI also clearly states that it is non-binding, and further provides that the lawyers acting for the vendor and the purchaser will proceed to prepare and negotiate a formal purchase agreement within five business days. It's a familiar story. Approach with caution!
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