What comes in first the LOI or the LOA if im the seller?
The LOI (Letter Of Intention) would come before the LOA (Letter Of Acceptance).
The letter of Intent is an intent to write a contract. Usually associated with large contracts. Sometimes used by others trying to tie up a property/take it off the market.
If this is in reference to a property…do not sign…you do not want to arbitrarily take a property off the market unless there is a substantial monetary hold somewhere to protect from a fall through on the actual sale.
Neither is enforceable unless all the material terms of the contract are included (rarely done) and signed by both parties. Even though a LOI comes first, it is irrelevant from a legal perspective. Usually a LOI is subject to approval and signed contract anyway. Binders are also useless as enforcement tools.
If I have a customer who is making an offer, we submit the LOI first. We negotiate terms and then it goes straight to contract. If you are doing a Letter of Acceptance, it would come after LOI and negotiations.
Rate this post
(No Ratings Yet)
Loading ...