Have you negotiated an LOI with a breakup fee instead of exclusivity?
I am negotiating an LOI where the seller will not accept full exclusivity, but one that triggers after conditions are met (e.g. financing approval).
Currently, the breakup fee is approximately 1% for either party if we walk away after diligence is complete (30 days).
My concern is that this is a set up for distrust/litigation. However, I understand that the seller has valid concerns about taking the deal off the market if I am unable to close.
Have you seen this work successfully?
