Is it common / has anyone escrowed funds as a condition of an LOI?

searcher profile

May 05, 2021

by a searcher from Washington and Lee University in Miami Beach, FL, USA

I get the reason why the seller would want to, but is this common practice? I feel like this adds unnecessary complexity to the deal at its current stage. Now I need escrow agreement, etc.

How would you counter this request?

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commentor profile
Reply by a searcher
from Pennsylvania State University in Pittsburgh, PA, USA
I was asked this during LOI negotiation. I firmly resisted and explained upcoming expenses for legal, accounting, etc put plenty of broken deal risk on the buyer. Seemed like he understood and it never came up again.
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