Time to Buy
Once you have picked out the property you want to purchase, your real estate agent can help you make an offer that the seller will accept. A good agent will guide you on what needs to be in the LOI and some of the terms that may be acceptable to the seller.
Letter of Intent (LOI)
The basic terms in an LOI will be the framework that the Lawyers use to build the contract. Many deals never make it to the contract because the LOI only covers some of the principal parties’ essential points. A few points that need to be in all LOIs
- Buyer
- Property Description
- Price
- How do you plan to fund the deal
- Earnest Money Deposit – this should be around 3-5%. This shows your serious
- The conditions to have the money become non-refundable.
- The closing and escrow agent
- Inspection window
- Key points of inspections
- Closing time frame
- Extension option and fee