Cell Tower Leasing _ Letters of Intent. The latest cell tower leasing trick we have encountered is tower companies that are using "Letters of Intent" as a tool to unwittingly get property owners to sign what they believe to be a harmless letter. Some people are led to believe that this is "just a way for us to lock in these terms with our bosses" or "just a letter of understanding so that we can investigate using the site". Well these letters are not simple but I can tell you what they are in many cases....legally binding!
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.