Risk Register Before The LOI
Create a simple risk register that separates likelihood, impact, owner, and mitigation before signing an LOI.
The reframe: a risk note is not a risk plan until it changes the next action. Name the risk precisely "Environmental" is too broad. "Former dry cleaner use with unknown vapor condition" is usable. Specific risks can be assigned, investigated, priced, insured, escrowed, or used as walk-away conditions. Score likelihood and impact separately A low-likelihood risk can still deserve LOI language if the impact is catastrophic. A high-likelihood low-impact issue may simply become a closing checklist item. Separating the dimensions keeps the team from treating all concerns equally. Turn risk into terms The register should tell the deal lead what…
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