What is a Letter of Intent?
Here’s a cool video that teaches people about real estate vocabulary. What is a letter of intent? It is basically a letter to express interest in a property, but does not serve as a sales contract. They are basically contracts that express good faith, but cannot be used in courts assuming something goes wrong. It is a step ahead of a verbal agreement but one step behind a real written contract.
It is usually used in many cases such that a real estate agent is not used and the principals are trying to hash out details of a larger commercial property. Often this document is generated with the help of a lawyer in a real estate acquisitions team.
