Letter of intent

[Tomas Chao]

Hello BP Charlotte I am getting close to making my first offer. I was wondering how different people put together their offers (letters of intent). Thanks in advance for your help

[Roy N.]

Originally posted by @Tomas Chao:

Hello BP Charlotte

I am getting close to making my first offer. I was wondering how different people put together their offers (letters of intent). Thanks in advance for your help

That really depends upon what you are purchasing and how "complicated" the deal (and required diligence).

If you are purchasing a residential property (1-4 units) or even a very small multi-unit property (5 - 12) units, an LoI is likely overkill.   The deals are usually not too complex and the Vendors will be less sophisticated - an LoI may even spook them.  In these cases, just stick to the standard Real Estate Board Agreement of Purchase and Sale (APS) for the jurisdiction.  If you are purchasing privately and do not have access to the APS used by real estate agents, have your {real estate} attorney draft a simply and straight forward (and short) purchase & sale contract.

If the property is larger and the diligence is going to take some time, issue an LoI which outlines your offer price (subject to adjustment) and all the the information and access you will required from the Vendor to complete your diligence.