Letter of Intent / Offer to Purchase

[Ray Taylor]

So I am placing an offer on a Short Sale and I feel like its just too lengthy. Below is the letter of intent, I have tried to make it personal and cover all of the details. Should I split this up into multiple documents or stick with what I have? Any constructive criticism would be appreciated. 

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Date: 9/19/2017 

Dear NAME, 

The purpose of this letter is to express my intent to purchase Subject Property. I have outlined the below terms and conditions of the purchase: 

Buyer Information 

My name is Ray Taylor and I currently own property in the Terrell Area and think that your property would be a good addition. I am looking to invest into Single Family Residential Properties that meet my criteria to perform as a cash flow property. I believe that your property is just this and do not want to sit on the deal and will do everything in my power to expedite the process. I know that when someone is in the position to need to short sale time can be of the essence. Knowing that this is probably the case I have outlined my maximum timelines that it should take to close the deal. However, I do believe it can be done faster than the twenty-seven (27) days outlined if the need is there. I look forward to closing this deal with you. 

Property Description 

The subject property is located at PROPERTY totaling approximately 3025 of rentable S.F. herein described as "the Property". (The exact legal description to be supplied in escrow). 

Purchase Price 

$155,000.00 

Earnest Money 

Deposit $10,000.00 upon opening of escrow, and an additional $15,000.00 upon expiration of the contingency period, at which time the earnest money deposit shall be nonrefundable. 

Duration of Offer 

This Offer is valid until 5 p.m. on 26 September 2017 at which time both buyer and seller shall have completed a Contract of Purchase, otherwise, this Offer shall be deemed rejected. 

Contingencies: 

A) Inspection Buyer, at its sole and unfettered discretion, shall be allowed a seven (7) day period from the opening of escrow to review all documentation, obtain third-party reports, and otherwise approve the property. If buyer determines that for any reason the Property is not suitable for buyer's use, such purchase agreement shall terminate, Buyers earnest money shall be returned, and neither party shall have any liability or obligation to one another hereunder. 

B) Financing Prior to opening Escrow, Buyer shall have obtained a loan pre-approval detailing terms acceptable to Buyer. Buyer, at its sole and unfettered discretion, shall be allowed a fifteen (15) day period from the waiver of contingencies to complete the application, provide the lender with all documentation, and obtain a loan commitment, at terms the same as the application, or otherwise acceptable to Buyer. If buyer determines that for any reason the loan terms are not acceptable, such purchase agreement shall terminate, Buyers earnest money shall be returned, and neither party shall have any liability or obligation to one another hereunder. 

Closing Date 

Fifteen (15) days after waiver of contingencies. 

Opening of Escrow 

The opening of escrow will be the date that signed escrow instructions are received by [Title Company] along with the earnest money. 

Closing of Escrow 

At the closing of escrow, the seller will provide proof of proration. Taxes, rents, homeowner association fees and other income and expenses pertaining to the Property will be prorated as of the close of escrow to provide a clean and clear title. 

Confidentiality 

All aspects of this negotiated agreement shall be held by Buyer and Seller in the strictest of confidence. The confidentiality requirement shall not be in effect once closing occurs. 

Broker 

Principals of the Buyer are licensed real estate brokers in Texas and are acting as principals only. Seller and Buyer shall split all brokerage commissions 50/50.

The intent of this letter is to serve as a description of interest to purchase the property and is not considered binding on either party or to be used instead of escrow instructions. The terms expressed in this Letter of Intent will become null and void if not accepted within seven (7) days from the date of this letter. If you accept this proposal, we will proceed to enter into a purchase contract within five (5) days of acceptance or the date the bank has approved your short sale whichever is later. During this period Seller agrees to discontinue any third-party sale negotiations.

Sincerely, 

Ray Taylor 

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