Why use a Letter of Intent?A Letter of Intent is a great tool to use in order to gauge the viability of purchasing a property given the price and terms you are looking for.A lot of times, I will use a LOI when I am trying to purchase an investment property for much less than the Seller is listing the property. I may also use a LOI if I am unfamiliar with the property and the area. I like to use a LOI in these cases to start the negotiating process while I do some due diligence work during the process.
Letter of Intent. A letter of intent is an important document that sits neatly between a confidentiality agreement and a final commercial contract being signed. Following disclosure of information under confidentiality the next step in the process is for the parties to determine whether they wish to proceed to a commercial business relationship. The letter of intent signals to both parties that they wish to enter into a relationship subject to conditions being satisfied.