Anyone in Nevada who has been party to a real estate transaction — either residential or commercial — knows that these types of transactions can be complicated, with many different moving parts before it is all said and done. For starters, there is the anxiety and excitement of actually attempting to find a parcel of property to purchase. Next, it is the contemplation of the sale price and whether or not it is realistic. And then, most crucially, comes the time to make an offer to purchase the real estate.
This is the point at which potential negotiations get serious and the potential for a dispute becomes real. However, a recent article noted one option that many buyers are using to make this initial engagement a bit smoother: a letter of intent. As the recent article pointed out, such a letter — which is usually brief, perhaps even just one page — can be more helpful to a seller to gauge the buyer’s interest in the real estate than a proposed purchase agreement that can be several pages long and full of complex details.
The basics of a letter of intent may actually be discussed between the appropriate representatives for the two parties — buyer and seller — before the letter is transmitted. The letter will likely contain the most basic framework of a proposed deal for the real estate in question, so that the seller can make a determination that either, yes, they will engage with this potential buyer, or, no, this buyer’s offer is not appropriate.
As the recent article noted, a letter of intent can be an opening point in negotiations, which can help the two sides determine if they are close enough in terms of the details of the potential deal so that they can continue negotiations. From there, disputes and complications may be more easily avoided.