Selling a Business _ Why the Letter of Intent is So Important. A Letter Of Intent, or LOI, is an "intermediate" document drafted and submitted to you by the buyer.I say intermediate, because it is not the final contract. But it spells out the major elements of the sale the buyer and seller have agreed to so far. Typically, you will accept a Letter Of Intent and then enter into a period of exclusive negotiations with just one buyer. The Elements Of The Letter Of Intent.
If you are dealing directly with sellers to buy properties, rarely will you need to use a letter of intent. Instead, you'll be meeting with them in person to sit down and discuss options for buying their property. However, if you are working through a real estate agent (or two real estate agents if you're not dealing with the listing agent directly), letters of intent can help you succinctly express your offer in the best light, especially when you don't know if the agent who will be presenting your creative offer will understand the full benefits of it.