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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.

Letter of Intent. A letter of intent is an important document that sits neatly between a confidentiality agreement and a final commercial contract being signed. Following disclosure of information under confidentiality the next step in the process is for the parties to determine whether they wish to proceed to a commercial business relationship. The letter of intent signals to both parties that they wish to enter into a relationship subject to conditions being satisfied.

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