Offers & NegotiationHomebuying Glossary
Letter of Intent
Also known as LOI
A non-binding written summary of proposed deal terms, used before a formal contract is drafted.
In plain English
A letter of intent outlines the general terms a buyer and seller are considering — price, timeline, key conditions — before a formal, legally binding purchase agreement is drafted. It signals serious interest without full commitment.
Why it matters
LOIs are more common in commercial real estate than typical residential purchases, but understanding the concept helps if you encounter it.
Related terms
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