Using Letters of Intent With Real Estate Agents. Some real estate agents and real estate brokers prefer to write up a contract for each offer, while others use a letter of intent to express interest in a property and to work out the details before writing up a full contract to purchase real estate. Many bank owned properties (also known as REO properties) are explicitly telling agents not to submit letters of intent on their listings, but with private sellers, a letter of intent can be a good way to introduce your creative offer to a seller without a huge amount of time invested by your real estate agent.
4. On Offer acceptance there is either a contract generated or a pro forma invoice generated. Since the offer is binding once accepted, the offer if well enough detailed and advised can and often does take the place of the contract.* Customarily in Real Estate transactions the purchase offer itself is generally also the contract for purchase as well. The offer becomes a binding contract once accepted.The Letter of Intent is not binding, and rather silly at the worst of times. An LOI by definition only registers intent to purchase, and it specifies this intent weakly, and due to its ambiguity should be avoided.