What is loi in real estate?

LOI stands for Letter of Intent and is a document commonly used in real estate transactions to outline the key terms and conditions of a potential deal. It is typically a non-binding agreement that precedes the formal contract and serves as a starting point for negotiations between the parties involved.

The LOI typically includes important details such as the purchase price, financing terms, due diligence period, closing date, and any other key terms that are essential to the transaction. It is important for both parties to carefully review and negotiate the terms of the LOI before moving forward with the formal contract to avoid any misunderstandings or disputes later on in the transaction process.

While the LOI is typically non-binding, it can still have significant legal implications, so it is important to consult with a real estate attorney or other professional before signing any documents related to a real estate transaction.