Letter of Intents
What terms do you usually put in a Letter of Intent (Lease/Purchases)?
[{"id": "g0a0m65", "text": "Obviously varies depending on lease or sale, but my sale for example looks something like this;\n\nATTN: Address, etc.\n\nBuyer Entity\n\nSeller Entity\n\nProperty Description (address and brief description if no legal or survey)\n\nPurchase Price\n\nEarnest Money Deposit\n\nDD Period\n\nConditions\n\nBuyer Obligations\n\nSeller Obligations\n\nTitle Commitment timeframe and objection/remedy timeframe \n\nClosing Date\n\nClosing Costs\n\nSeller's Deliverables\n\nNature of Proposal ( Outline that proposal is non-binding, parties agree to work in good faith to reach written sales contract in x days, yada yada lawyer language)\n\nBroker Representation Disclosure and commission to be paid by Buyer/Seller etc. pursuant to separate agreement.\n\n&amp;#x200B;\n\nLMK if you'd like any elaboration.", "replies": [{"id": "g0dib59", "text": "As a commercial real estate paralegal... this is all good stuff.\n\nI have a few items to add specifically for a lease:\n\nBase Rent\n\nFirst Month\u2019s Rent Due\n\nEarly Occupancy/Possession\n\nTenant Improvement Allowance\n\nSignature blocks :)", "replies": [{"id": "g0h35m1", "text": "NNN's, escalation etc need to be in there for a lease too.  Per seller deliverables we tend to put time period on them and require certification of anything not delivered too.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g0api92", "text": "Don't forget to put the date/time your LOI expires. It helps to move it along to have a deadline.", "replies": [{"id": "g0aqpp1", "text": "I\u2019ve always been annoyed by deadlines in LOIs given it\u2019s a non-binding document anyway. I\u2019ve never had a client adhere to one on either side. Thoughts?", "replies": [{"id": "g0bit7j", "text": "Same", "replies": [], "depth": 3}, {"id": "g0bk9v6", "text": "Agreed, I always chuckle when a broker puts an expiration date on an Loi.  Ok big man.  We will let you know when we have an answer.  If it\u2019s after your fake deadline you have every right to not come back with you OFFER!", "replies": [{"id": "g0c8c1c", "text": "I have one client (buy side) who not only insists on my inclusion of deadlines in his LOIs, but asks me to follow up on the deadlines as they near expiration ruthlessly. He thinks he has some insane power deriving from them. It\u2019s always good for a funny call with the seller/listing broker. Hey it\u2019s going to take a few more days to respond? Our guy said he\u2019ll drop the price if it goes past the deadline. Oh y\u2019all don\u2019t agree to that and will respond when you can? Sweet.", "replies": [{"id": "g0h28kt", "text": "if you won't make a 30 second phone call to ask for an update on an LOI you are a shitty broker.  I'm not talking \"oh we will drop the price\" I don't have clients who play those games because I drop them to be frank.  Get better clients, but yeah real clients want to know whats going on with their deals", "replies": [{"id": "g0h9frv", "text": "Lol man you have too much coffee this morning? Obviously you missed the point of my comment. Including a deadline then having your broker repeatedly remind the seller of said deadline is far different than following up on an LOI. \n\nBut sweet that your clients are all great and never annoying! Great for you bro!", "replies": [{"id": "g0h9y10", "text": "gl with your clients.  I write the LOI's for mine and generally dictate the time line. If there is an issue with it I converse with the other broker as needed.  I don't generally follow up until the time line I have agreed to with my client.\n\n--edit-- maybe too much coffee today.  But to be honest brokers like you irritate the fuck out of me.  You do no service to your clients, send me bullshit, then argue with me over stupid shit like if we don't respond you will drop your price.  Just don't, be real.  Don't threaten me and act like a professional.  On the other side, if I send you something yeah it will have a date I would like a response by.  If you can't meet it, tell me why and its probably fine if its reasonable.", "replies": [{"id": "g0hf025", "text": "You know literally nothing about how I operate. A quick look through my posts on this subreddit would provide a glimpse into how I do, which is in a well thought out manner. I\u2019m extremely responsive/service orientated with my clients, to a fault, which means when a client directly asks me to do something (such as push a deadline) I will do so. I will then also joke about it here with other brokers as we know it\u2019s irritating, and I have great relationships with other brokers in my community so we can usually all laugh about it in person too.\n\nAs a reminder, you are literally having a mild melt down at the perceived way I operate based off your misreading one comment and then generalizing my entire business in your head. I have no desire to get into an internet fight and this will be my last comment to you on this, but I hope you read through this entire thing again and see how laughable your tough guy act is. Go get a deal done", "replies": [{"id": "g0hzxig", "text": "I hear ya.  Consider the audience of this thread and op.  They are asking how to write an loi.  Thats day one stuff.  I was mainly irritable at the guy you responded to.  \n\nTelling people not to put a deadline in or to mock people who do is terrible advice imo.", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "g0h1r86", "text": "&gt; If it\u2019s after your fake deadline you have every right to not come back with you OFFER!\n\nYes?\n\nGranted I get a lot of bullshit LOI's I don't respond to, but nearly all LOI's have some response time period listed.  \n\nYour property isn't the only one out there.  If you can't respond in a reasonable time period then maybe we go somewhere else?  Do you want to sell it/lease it etc or not?  Do you not think we have internal timelines and objectives we want to meet?\n\nSwing your dick around all you want, we will just move on.  Then you can say you were a big man who didn't put up with no non binding deadlines while we go across the street.\n\nWhat a stupid thing to argue about.  Do you never send stuff off to internal partners like attorneys, cpas etc and ask if they can get back to you by the end of the week or whatever?  Timelines do matter.\n\nIf the loi date is not feasible thats one thing, and typically that is just communicated (hey we need a few more days etc).  \n\n\"We will let you know when we have an answer. If it\u2019s after your fake deadline you have every right to not come back with you OFFER!\" is going to basically make us laugh at you and abandon whatever you are trying to sell or lease", "replies": [{"id": "g0iqcx7", "text": "Then send me a damn offer if you want a deadline treated seriously.  Maybe your market or asset type is a buyers market and you get to have that attitude of we will just move onto the next.  My experience has been on both sides if you are serious about the property you\u2019ll be around still willing to move forward if I don\u2019t meet your deadline in LOI. If not then you most likely were not going to come forward with a real offer.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g0blrxs", "text": "I will send a free LOI template we use if you email me at info@kapelrealestate.com", "replies": [{"id": "g0is826", "text": "Sent", "replies": [], "depth": 2}, {"id": "g0iu3d6", "text": "Sent", "replies": [], "depth": 2}], "depth": 1}, {"id": "g0bssu7", "text": "*Letters of Intent.", "replies": [], "depth": 1}, {"id": "g0c2j66", "text": "I like to keep it simple and keep it to a page or two. I get really pissed when some stupid Poke franchise sends me a twelve page LOI like they are fucking Apple.", "replies": [{"id": "g0ciny2", "text": "Jesus yes.  LOIs are about as binding as a pinky promise.  Stick to the basics and get into the weeds on the actual lease/PSA", "replies": [], "depth": 2}, {"id": "g0h0kvw", "text": "&gt; some stupid Poke franchise sends me a twelve page LOI like they are fucking Apple.\n\njesus christ this", "replies": [], "depth": 2}, {"id": "g0h3f86", "text": "Just to tack onto this but some of these RFP's I get.  \"hey we saw your listing on loopnet, can you spend 5 hours completing this before we even bother to visit the site?  k thx\"", "replies": [], "depth": 2}], "depth": 1}]