Letter of Intent or Purchase Agreement - Posted by CurtNY

Real Estate Investing
1

Posted by Doug Pretorius on June 20, 2000 at 13:51:21:

If I’m not mistaken an LOI is not legally binding. So to prevent what happened from happening again you should use a contract or better yet get the deed, just don’t record it until you want to go through with the deal, if it doesn’t work out you can always deed it back.

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Letter of Intent or Purchase Agreement - Posted by CurtNY

Posted by CurtNY on June 20, 2000 at 10:42:23:

For those of you who remember I made an offer on an old farm house about 3 weeks ago. The seller called me back to tell me he got another offer at the asking price but would keep my number in case it fell through (asking price: $80,000, I offered $36,000- needs a lot of work, I used a Letter of Intent) Well last night he left me a message the deal fell through. He did some clean up and removed the tenant (Lease option that went bad, really bad) wanted me to come take a look and make another offer. My question is here in NY (moved back about a year ago) most realtors don’t like Letter of Intents. They prefer a purchase agreement… should I make my second offer this way or just continue with the LOI. (I’ll be making the offer to the owner)I’ll let you know how it goes. God I love it when the deals come to me!

Curt NY

3

Re: Letter of Intent or Purchase Agreement - Posted by Shenesa

Posted by Shenesa on June 20, 2000 at 11:16:54:

Can you explain what a letter of intent is?

Thanks,
Shenesa,NY

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Re: Letter of Intent or Purchase Agreement - Posted by CurtNY

Posted by CurtNY on June 20, 2000 at 11:49:52:

Shenesa,
A letter of intent is an informal one page description of the terms of an offer. I you like I can email you a copy. Send me an email to cdarragh@mortgageselect.com and I will send it. FYI you should always check with an attorney before using any binding document.

Thanks
CurtNY