Letter of Intent

A Letter of Intent (LOI) is a non-binding document that outlines the proposed terms of a commercial real estate transaction before a formal contract is drafted. It typically covers key deal points such as price, deposit, due diligence period, financing contingencies, and closing timeline.

While generally not legally binding on the final transaction, an LOI signals serious intent and provides a framework for negotiation. Some provisions within an LOI — such as exclusivity or confidentiality clauses — may be legally binding, so both parties should review them carefully before signing.