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The Most Important Clause to Include in a Letter of Intent (LOI) Or Purchase Contract. Writing a Purchase Contract or Letter of Intent (LOI) to buy an apartment building or commercial property can be an exciting experience. It can also be a bit intimidating. This is especially true for beginning investors.

Many individuals will use the terms Letter of Intent, Memorandum of Understanding, and Term Sheet interchangeably, however there are slight, mainly style, differences. Memorandum of Understanding (MOU): The main difference between the MOU and LOI is the nature of the signatories. While two parties are involved in a LOI, a MOU can involve more than two parties. Additionally, while a letter of intent needs only the party which proposes the agreement to be a signatory, a MOU implies that all the parties involved have to be signatories.

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