Laundromat Resource Forums Laundromats LOI Contingencies

last updated by Matt 2 months, 2 weeks ago
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    • #18048
      Eddy
      Participant

        I’m about to submit my first LOI and have a question on what level of detail needs to be in the contingencies section.

        I see that Jordan has a good list of different types of contingencies, but advises to not go too heavy on the qty you list because it could scare the seller away.

        I have seen another LOI template that is pretty straightforward/short/vague:

        “Before parties can reach a final agreement, [Buyer] must be satisfied with the due diligence processes, all information and documents that [Seller] provides, as well as the negotiation of employment contracts.”

        How specific should the LOI Contingency section be? Is it better to be vague to 1) not scare the seller with a list, and 2) protect ourselves in case we accidentally forget something on the list (if we specifically make a list of contingencies, but ran across something we didn’t’ like, but it wasn’t on our list)?

        Thanks in advance,
        Ed

      • #18566
        Matt
        Participant

          I keep it simple.. Like i have the rights to review or inspect everything and its subject to your acceptance. Also I list a few items I know I want to see like “including but not limited to three years of CAM fees, and maintenance records”

          But list the things you think that you know is already agreed on to prevent confusion.. rates, sq footage, HVAC work, items like fixing doors or leaks in roof…

          It bases to start with not the final agreement.

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      Laundromat Resource Forums Laundromats LOI Contingencies