Apartment Investing _ Letter of Intent Or Offer to Purchase? Which is better, a Letter of Intent or Purchase Offer? This is a frequent question for apartment investors looking to make a purchase. Before we get too far, here is my quick definition of the two documents: 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.
If the letter of intent is accepted, then the due diligence period will begin. It will continue until the time agreed upon by both parties in which, at the end of the term, a binding contract is constructed. Terms may change during this time if certain aspects of a property, previously not disclosed, are discovered.