in order to formalize the intent here, it is appropriate for both parties to review and sign the document, so everyone is on the same page as to how the purchase contract is going to be drafted and the terms of the deal. the buyer should provide a solid timeline of how long it will take to review due diligence materials, obtain financing approval and closing date. the closing date is typically determined as a number of days after the due diligence period (typically 15-30 days) and the buyer may also be wise to include any extensions for any uncertain delays.

this letter of intent (the “document”) made as of this ________ day of ________________, ________ (the “execution date”), this document will establish the basic terms to be used in a future real estate contract for sale (the “contract”) between the seller and the purchaser. a letter of intent (loi) is a statement of understanding between two parties. lawdepot’s letter of intent is non-binding, meaning that the parties are not legally required to follow through with the terms of the agreement. you can use a letter of intent under any circumstance in which two parties agree to move forward in good faith before finalizing an arrangement. this allows the buyer to assess the viability of the purchase in a way which also protects the interests of the seller. give details of the arrangement, such as the property’s price in real estate arrangements and if you are putting down a deposit.