Letter Of Intent

Do you have a standard Letter of Intent you have used for acquisitions?

I do not use Letters of Intent. They are not binding, and so I go straight to a Purchase Contract. I do not have a sample form, but they are extremely simple. You are buying either 1) a ground lease and permit ready to build or 2) an existing sign with ground lease and permit. You need only three short documents 1) a bill of sale for the sign structure (if applicable) 2) an assingment of the ground lease and 3) an assignment of the permit. You will also need an assingment of the ad leases, in the event that the sign is built and has existing non-expired ads on it.

The Purchase Contract spells out what you are paying, when you are to pay it, and what the seller’s warranties are. None of this is rocket science.

Any competent attorney can draft these quickly and easily. You need to use a competent attorney because you have to make sure that these documents are binding in your state. Do not use forms from one state in another state, as the contract laws are different in each one.

Make sure, on the permit assignment, that you have checked with the state and city and are 100% sure of how the system works. In some states, you have to have a special form signed from the seller. Make sure you know what you are doing, as if you lose the permit, you’ve lost your whole investment. Also, make sure that the seller provides licensend engineering for the structure (if applicable). There is too much liability to buy a deficient structure with no proof as to its safety.

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