Exclusivity under LOI, but still able to advertise?

by a searcher from University of North Carolina at Chapel Hill

10 months ago

On one LOI that I'm negotiating, the broker is advocating for adding a clause to the exclusivity section which allows him to continue to advertise the deal and take back-up offers so long as he doesn't communicate those with the seller. They would just be in reserve if our deal falls through. Is this normal?

I get the desire of the broker to protect their process and minimize dead time from a lost deal, but I also don't want another buyer to swoop in during what is supposed to be an exclusive period. Maybe I can protect so that, if the seller walks but goes under LOI with someone else within 60 days, they must cover my deal expenses?

Any input appreciated. Thanks!

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intermediary from Wisconsin Lutheran College

Normally I try to negotiate that the business stays on the market, but no conversations happen or offers can be negotiated. That way you as buyer have exclusivity, but if the deal falls apart broker/seller is not starting over. Normally buyers aren't interested in putting in back up offers once they know a deal is under contract anyway, so it's a low risk ask.

9 months ago | like reply | 0 likes

intermediary from University of Florida

You definitely don't want to agree to this but that doesn't mean you have a choice imo. DM me or call me if you want to speak about this further.

9 months ago | like reply | 0 likes

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