Letter of Intent (LOI)
A Letter of Intent (LOI) in real estate is a non-binding document outlining the key terms and conditions of a proposed transaction between parties, typically a buyer and seller or a tenant and landlord. It serves as a preliminary agreement that sets forth the basic terms of the deal, such as the purchase price, lease terms, closing date, and any contingencies or conditions that must be met before the transaction can proceed. While an LOI is not legally binding, it serves as a roadmap for negotiating a formal contract or lease agreement. LOIs provide clarity and transparency to both parties, helping to streamline the negotiation process and ensure that everyone is on the same page before proceeding with the transaction.