We talk a lot about various forms and most of the forms we talk about are posted on our FREE REAL ESTATE FORMS page on this site. One of the forms we refer to quite a bit in our business is the LOI. An LOI is a Letter of Intent that you typically use in commercial real estate transactions. We use LOIs all the time when starting to negotiate on commercial properties.
If you’d like to see an example of a LOI Form Letter of Intent for real estate deals, check one out here.
Your LOI should contain at least the following outline of terms:
A letter of intent (LOI) must have five basic elements in its content:
- The buyer’s name
- The property address and description
- Your offer which includes:
- Purchase price
- Down payment
- Terms
- Conditions
- Due diligence time
- Closing time
- Any other clauses or provisions
- When a formal contract will be written up if the LOI is approved
- A clause that makes the LOI non-binding
- Your signature and a place for the seller’s signature
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