Your LOI is non-binding and generally covers only the high level terms - price, earnest money, timing, contingencies, etc. So I don't see the need for different offers. The actual PSA will have more detail and should be done using a local transactional attorney.
Your LOI is non-binding and generally covers only the high level terms - price, earnest money, timing, contingencies, etc. So I don't see the need for different offers. The actual PSA will have more detail and should be done using a local transactional attorney.
Sorry I meant having different purchasing agreements for different states.
What ways would a local transactional attorney make a difference? Also, do you have a method to find them?
It sounds like you use the LOI and then when the deal is agreed on you find a local attorney for tying it up. The only issue I'd have with that is waiting the day or two to find them and get it written up before closing the deal. A night of sleep can change minds lol
@Alex Tobias, I don't know how much you've done with apartments but it's not like SFH. You're not a wholesaler trying to quickly get a contract signed and submitted to the title company to lock in your deal. Although an LOI is non-binding generally it is signed in good faith with the expectation that both sides will work towards getting a mutually acceptable PSA that follows the general guidelines laid out by the LOI. The entire process from a signed LOI to a signed PSA is 10-14 days. You have way more than a night to change your mind but the expectation is that as long as the PSA is keeping with the main terms of the LOI there should not be an issue.
We just went under contract on a 284 unit deal in Houston, TX.
We used a local attorney for the PSA (purchase sale agreement) and who was familiar with local laws and customs like using the Texas equivalent of an ALTA title insurance, etc.
Also keep in mind that for commercial projects, a large (6 figure) deposit will be required and in hot markets a portion of it will be non refundable.
every state has their own laws and customs. I would get with the broker and use a sample LOI that they use. For instance, in NY, down payments can total around 10% of purchase price. In TN, the number is far less.
Great advice in the thread so far. Each state has different charges and processes for closing so the Purchase Agreement will reflect that. In addition, I see a lot more local deals and can advise on what the market is seeing as far as terms...