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004 Sample Of Letter Intent For Business

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Which is Better: An Offer to Purchase or Letter of Intent? First, let's define the two, then I'll discuss when to use a Letter of Intent. 1. Purchase Offer, or Purchase Agreement _ A legal document that describes the price, terms, contingencies, and other details of how a buyer would be willing to purchase a piece of real estate. 2. Letter of Intent (LOI) _ A preliminary document outlining the price, terms, and other transaction details that a buyer would be be interested in purchasing a piece of real estate.

One of the most important things you can build into these documents is a clause that allows you to perform proper "due diligence" on the property. Basically you want to make sure that you have time to review all of the necessary financial information, management documents, and fully inspect the property itself BEFORE you finalize the purchase of the property. If things are not what they appear to be on the surface, it is better to find out now _ before you own the property than 6 months down the road.

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