Offer Letter | For Sale by Owner

[Ryan Copeland]

Hello BP,

I've been talking with an owner for an off-market deal and they asked me to send an offer letter.  I was wondering does anyone have some type of template to use or can provide some type of example.  Any type of guidance would be appreciated.

Thanks!

[Scott Wolf]

@Ryan Copeland, when someone asks for an offer letter, or letter of intent LOI, I give them a basic one outlining price, downpayment, contingencies, due diligence period etc. I make sure to include the following at the end, so they know it's not legally binding (which nothing usually is until a contract is signed, but we live in a litigious society so....

"This Letter of Intent is intended as an outline of the general provisions of a Purchase and Sale Agreement and further intended to facilitate further negotiations that will lead to a mutually acceptable Purchase and Sale Agreement that will be executed by all parties concerned. This letter is not, nor is it intended to be, a legally enforceable and/or binding agreement by either party. A binding agreement is subject, among other things, to the successful negotiation and execution by the duly authorized representatives of both parties of a fully integrated Purchase and Sale Agreement."