LOI was meaningless to LL and he found a better deal
Fairly new, &lt; 2 years, in the Northeast. Is it common for landlords to drag deals out with bullshit excuses for months only to really be waiting on better deal? 
Even with signed LOI last week after 3 months, the deal comes back dead as a better offer comes in within a day of signing ours. Seems like LOI didn’t mean anything. Lesson learned, time kills all deals. Kill it yourself after a few weeks and move on faster. Agree?
[{"id": "i687t6s", "text": "Sounds like the LL was shopping your offer. Typically, in my LOI's, I put a timeframe in for which a Lease will be provided (anywhere from 3-10 days) so that the deal doesn't sit out in limbo for an unspecified period of time.", "replies": [{"id": "i6br2pv", "text": "Our exclusivity period is for 45 days. I'm thinking it needs to be shorter than that, but on large land sales deals... gets kind of hard.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i68odss", "text": "Add an expiration date to LOIs. Sorry to hear this happened. When we work multiple offers, we\u2019re always transparent about it, but I guess there\u2019s no rule saying you have to be. Relationships are too important in CRE to be doing things like that.", "replies": [{"id": "i6br79k", "text": "We're almost always in Multiple Offer territory now. I have 7 days as deadline for LOI... so far it has mostly been ignored.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i6913dc", "text": "LOI\u2019s are [generally] completely non-binding", "replies": [{"id": "i6aeenz", "text": "Except when they aren\u2019t. Love the client LOIs with confidentiality and exclusivity penalties yet trying to be \u201cnon binding\u201d", "replies": [{"id": "i6ardfz", "text": "both of those are common and reasonable.  I don't want the LOI to replace a lease.  I do want you to be working in good faith when you say the deal terms in it are acceptable and expect you to work with me to finalize the deal and not waste our time.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i69rzfq", "text": "5-10 Business day expiration date it next time.", "replies": [{"id": "i6adga9", "text": "Yeah, but these expiration dates in LOIs don't really mean anything either.", "replies": [{"id": "i6ejjnx", "text": "True.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i69um3j", "text": "An LOI is not legally binding.  It's nothing but an agreement that both parties will continue to negotiate on a potential deal.", "replies": [], "depth": 1}, {"id": "i6a5t6f", "text": "Do LOI for CRE deals typically not include any period of exclusivity?", "replies": [{"id": "i6ae9u2", "text": "It\u2019s tricky whether it\u2019s binding https://www.adventuresincre.com/understanding-acquisitions-the-loi/", "replies": [{"id": "i6bwzvw", "text": "Majority of LOIs stipulate it is not binding within the document.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i6cem1c", "text": "No. Usually a lease but it's informal until it's executed", "replies": [{"id": "i6e7h9j", "text": "Seems like a ton of broken deal risk. What forms of mitigation exist?", "replies": [], "depth": 3}], "depth": 2}, {"id": "i6fierm", "text": "they do at the higher end and the LOI specifically states which sections are binding and which are not", "replies": [], "depth": 2}], "depth": 1}, {"id": "i6ah7v7", "text": "LOIs are just window shopping. Until you both sign the purchase and sales agreement, you guys are still just flirting at the bar counter.", "replies": [], "depth": 1}, {"id": "i6ahcjo", "text": "LOL @ everyone saying put an expiration date.  Landlord obviously had a lot of confidence that he could get a better deal or he wouldn't have waited 3 months.  Expiration dates mean nothing.  What's expiring if none of it is binding?  As if I'm going to approach you a week after the expiration date, and you're going to tell me \"no sorry, the expiration date passed ... can't do the deal bud\".", "replies": [], "depth": 1}, {"id": "i6apbwl", "text": "LOI means nothing", "replies": [], "depth": 1}, {"id": "i6b83g0", "text": "Don't use an loi. They are mostly pointless except as a memo of understanding.", "replies": [{"id": "i6brbqn", "text": "Sometimes I feel they're a nice little sheet of terms to shop around. It sucks. But a formal contract could be used the same way and now you've wasted the attorney's time too.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i6b8xsq", "text": "A hotel client I had told me one time that an LOI is when the negotiations actually start\u2026", "replies": [], "depth": 1}, {"id": "i6bqwm8", "text": "Been having similar issues on LOI response times and acceptance in Texas. It is wearing. Client has money... but sellers term demands usually cause most issues. Everyone wants to cut Due Diligence out... hard when in the land development sector. I'm newer too.", "replies": [], "depth": 1}]