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The LOI is a document that outlines the terms and conditions
of a purchase and outlines the framework for your contract.
A Letter of Intent (LOI) is a document that outlines the preliminary understanding between two or more parties who intend to enter into a formal agreement. Here are some key points about LOI's:
- Clarity: Provides a clear framework for negotiations.
- Commitment: Shows a serious commitment to the proposed deal.
- Protection: Can include clauses that protect the interests of the parties involved, such as confidentiality agreements.
- Eliminates Liability: Unlike a contract to purchase, the LOI eliminates any liability risk or exposure.
- No Capital Required: No down payment of earnest money is required with an LOI .