Letter Of Intent
I am in Maryland, is there any legal wording to protect me as a wholesaler from receiveing back a signed letter of intent with my offer, with a traditional MAR to follow within 5 days. When the listing agent stalls and then gives the owner a higher offer from another buyer after signing my letter of Intent.
Jim
Nothing against agents, but these are the joys of working through a third party....
The agent is looking to garner the highest and best offer for their client...
Usually the LOI stipulates an expression of interest, and if signed, would NOT constitute a binding agreement... it is, in my opinion and experience, a simple "hello, i am interested in buying, i will pay this much and want this and will close at this time... do you want me to send a formal binding agreement?"
The signing of the LOI is "yes, send over the full purchase agreement, and I will take a look and either accept, not accept, or counter-offer."
Hope this helps..
One of the investors I work with doesnt send letters, he sends just the offer. He investigates a property online, does a drive by, and then has me write up an offer and send it in the mail or hand deliver it to the seller. He seams to have a much better response then sending a letter. Keep in mind there may be many investors or agents sending "letters". He always has an inspection period in the offer that lets him back out if he finds out what hes buying isnt going to make him money or wasnt what he thought. You may have better response sending an offer and maybe a quick introduction letter, plus like the above mentioned its then legally binding. I also have to comment on one of the comments above about the "joys of working with a third party" ie, realtors. If I read it right hes complaining that realtors just want the best offer and price for their sellers??...ummmmm yeah, your right. I tell you watch out for those realtors, all they care about is whats best for their clients. Plus they protect an unknowing seller from getting ripped off from a sleezy investor. Realtors are so mean!