In my experience, a casual, personal letter to the seller is often the best received way to present your intentions to purchase a property. Some people insist on drafting a formal, multi_page, non_binding contract filled with legal jargon that can often intimidate the seller. A seller wants to easily see how the buyer wants to purchase the property, and determine if he or she can accept the presented terms. Read on to learn how to construct a letter of intent and what to include. Let's investigate the contents of a letter of intent so you, too, can construct one before putting a property under contract.
The Key to an Effective Letter of Intent. A letter of intent, or LOI, is a document that outlines an agreement between two or more parties before the agreement is finalized. A Letter of Intent resembles a written contract, but generally are not binding upon the parties. The purpose of an Letter of Intent may be to clarify the key points of a complex transaction for the convenience of the parties, to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal, or to provide safeguards in case a deal collapses during negotiation