Seller's obligations and legal position: The seller is obliged to continue operating the business in a manner that is consistent with past practice and that he shall facilitate the purchaser's endeavors in obtaining finance from third parties. However, neither the purchaser nor the seller is under any obligation to complete the acquisition of the business until and unless the purchase acquires all permits, certificates, permissions and approvals as required ensuring the correct operation of the business by the purchaser. In addition, the purchaser should also have completed a due diligence investigation and satisfied himself/herself in this regard.
Academic: In the academic world a letter of intent is known as a Statements of Purpose and is part of the application process. Real estate: Often times there are properties that are not listed on the MLS or with a realtor. It is at these times that a letter of intent can be used to let the owner of the house know that a potential buyer exists and thus the process of buying and selling the house may begin.