Seller who doesn't want to offer exclusivity post-LOI

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by a searcher from University of Massachusetts Amherst - Isenberg School of Management
in Washington, DC, USA

1h ago

Seller who doesn't want to offer exclusivity post-LOI

Has anyone ever had a transaction where the seller did not offer exclusivity after accepting an LOI? I haven't yet submitted an LOI, however I am being told by the broker that the seller (due to being burned by the last buyer) doesn't want to go exclusive before a Purchase Agreement is completed. What are ways to mitigate the risk of spending money during DD in this case? I've thought through a refundable deposit to see if that changes their mind or structuring the LOI in a way that once certain milestones are reached, like being approved for financing, the seller must offer exclusivity. I'd welcome any thoughts.

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reply by a searcher 1h ago
from The University of Chicago in Nashville, TN, USA

You have the right approach. Refundable deposit is the limit of where I would go. Otherwise, walk away, I don't think they will find many people willing to accept those terms.

reply by a searcher 1h ago
from University of California, Berkeley in San Francisco, CA, USA

If you love the deal, I'd try to understand seller's motivation. If meh, I'd walk but leave the door open. Certainly i'd say its at least yellow flag on character.