Are Blind Offers Legally Binding?

New and going through the course. Just started. I am not reaching the volume of postcards I like from the delinquent tax list so I wanted to also do blind offers. Since it is my first time doing this I am concerned whether the letters are legally binding. I don’t want to send out blind land offer letters that someone can sign if I send something that was way overpriced or I just don’t have the capital to buy it. Does anyone have experience with rescinding offers ? What do you do in that case? I was thinking I would just send a letter with the offer amount and ask them to contact me instead.

@johnpanagio hi and welcome to the REtipsters Fam. Not an Attorney here but I can tell that Blind offers are not binding (neither for you nor for the seller). You want to have this confirmed by a Lawyer but, for what I know, things works differently just in case there is an exchange of money sealing the deal, like, for example, an option fee or an earnest money deposit. Also, make sure to state in your PA that you can move out from the deal anytime for any reason you deem appropriate. Finally, when doing blind offers, I always sign my PA but nothing stops you to have Seller signing it first, and then you signing it just after your due diligence, in case that comes out as expected. FYI, I ran from deals a few times. Good luck!

Consideration is where it typically becomes binding. As a buyer, I have a couple outs in my offer…but wrestling with this early on, I switched from a Purchase Agreement in my offers, to a property offer. This falls more inline with a Letter of Intent. I use a range versus a set price and this gives the negotiations a chance to work.

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The letter of intent and range approach is a lot safer. Some people like to take this contract issue to the next level. And will potentially press you on it. Why bother with them when you can just give them an idea where you’re a buyer. Basically traps the lawyers into the grey area by not actually stating a price.

@johnpanagio When you don’t feel comfortable for a start and think you might overprice some of your offers, you can send out your blind offers with the purchase agreement without your signature - as Arturo mentioned. I don’t have any data if that might cause a lower response rate, but we had responses with blind offers without our signature on them.

Just sending out a letter with the offer amount and asking to contact you might also influence the response rate. A purchase agreement (even without your signature) has the advantage of making it clear that you want to buy the property. :slight_smile: Or you choose the “letter of intent” - as Justin and Gerard were saying.