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.
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.