I am in a process of facilitating cash transaction in buying a 4 unit retail property in CA. I am representing the seller and we are at LOI stage. In the Letter of Interest, the buyer is asking 120 days of contingency period. Is this reasonable amount of time to consider in cash transaction? I would figure 45 days would be average even with the loan contingency. is there a way to deal with the veteran agent who wouldn't budge on his contingency period?

What are the contingencies ?

Might it be that they don't actually have the CASH ? . . . . and now need time to go and try to round it up ?

Is this that deal you were trying to do a year ago?

A 120 contingency is a joke. If your seller wants to go for this trash just insert a "right to continue marketing clause" into the contract.

This way you are not locked into a junk contract for your seller.If the buyer won't agree to this then get upfront (HARD) non-refundable earnest money that YOUR BROKERAGE or ATTORNEY holds.This way the buyer will be motivated to perform and have skin in the game.The buyer cannot have their cake and eat it to and hold up the property forever and then back out with no repurcussions.

Now if they want to demolish the existing structure and are trying to get site plans and zoning approved prior to releasing contingency that can take months and months for approval. In any case though without non-refundable hard earnest money they don't get exclusive rights to the property.

good luck-no legal advice