My wife and I have a deal cooking and need to get the deal
locked in ink. Frank do you have a letter of intent for parks or should I just
use whatever our local title company has?
I know that this has been brought up before, and I believe the general feel was to not even bother with a letter of intent. Get a contract written up and send that. If the seller get your LOI and someone else sends a contract, he’s going to look at the contract.
As a Real Estate Broker I would agree with Danielle to:'Get a contract written up and send that.'A Letter Of Intent is usually not binding. Please consult a Real Estate Broker and/or Real Estate Attorney in your state for state specific advice.In South Carolina I would have my Client get a ratified ‘Agreement/Contract: To Buy And Sell Real Estate’ with at least one Addendum. Ratified means that both the Seller and Buyer have agreed to all the terms in the Contract and Addendum(s) and have both signed all pages.In the Addendum A I would include the following points:1. You are either Representing Yourself in this transaction /or/ you are using Real Estate Agent “First & Last Name” and that the Seller will pay % Commission to your Real Estate Agent’s Company as a Commission2. The MHP is legally zoned # Spaces Mobile Home Park by the local government.3. The MHP is connected to public water & public sewer (or whatever water & sewer it is connected to).4. Any Parked Owned Mobile Homes are included in the sales price, are located physically on the property, in livable condition and have clear titles.5. Financing: You are able to obtain Financing for said MHP in 60 or 90 Consecutive Days.6. Due Diligence Period: 60 or 90 Consecutive Days Due Diligence Period.Make sure that you place clauses that you are able to get your Earnest Money returned if you are not able to obtain Financing or if something in your Due Diligence Period comes up poorly.We wish you the best!
Sorry that I have been on the road looking at parks.We do not use a letter of intent. You want to go straight to a contract to purchase. Letters of intent are non-binding. A contract is. The goal is to take control of the property while you evaluate it, and a contract is the only way to go.Don’t use the title company’s form contract. You need a mobile home-specific purchase contract. Contact Brandon at (855) 879-2738.
What is the standard amount for earnest money?
as little as possible, maybe between 2k and 5k