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D. Asset Identification_The LOI should identify the assets to be bought and sold in the transaction. For example: Assets of ABC Childcare, Inc. and real estate held in the name of XYZ, LLC and used in operations of ABC Childcare, Inc. Said assets and real estate are located at 123 Main Street, Any Town, Any State, 12345. E. The Purchase Price. F. Amount of buyer's good faith deposit and the company responsible for escrowing the deposit.

A Letter of Intent is usually used in the beginning stages of a negotiation to get "good idea" of what the buyer and seller are each after. It is not required, and quite frankly, is not used in most transactions. However, a LOI is a good document to use _ especially if you are looking to purchase a property for substantially less than the listing price. Let's look at when the best time to use Offer to Purchase. Remember, this is the formal offer, and is legally binding once signed by both parties.

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