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002 Letter Of Intent Sample For

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G. Terms of the transaction_Examples: All Cash at Closing... or Ūꯠꯠ Cash and 趚ꯠ Promissory Note at Closing. H. Information pertaining to any lease to be entered into by the buyer. Example: Buyer and Seller agree to enter into a triple net lease with an original term of 10 years and three five_year options. Annual increases in the lease rate will be the lesser of CPI or 2Ǒ% of prior year's rent. Again, the LOI is not drafting the lease. It is only establishing the primary terms.

When the buyer presents a Letter of Intent (LOI) instead of an Offer to Purchase, you do not have as strong of an offer and the percent of such offers that actually close will reduce. It is also difficult to get buyers to make an earnest money deposit on a Letter of Intent. The major problem is these agreements usually require that the seller cannot look at any other offers for a period of 30╉ days while the buyer is reviewing the records of the business. Many Letters of Intent will have a financing contingency. When the owner is offering substantial seller financing, there should be minimal contingencies for financing.

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