What is Letter of Intent (LOI)?
A letter of intent is a short, usually non-binding document that outlines the main proposed terms of a commercial purchase or lease — price or rent, term, contingencies, and timing — before a full contract is drafted. It lets both sides confirm they're aligned and saves legal expense. Most LOIs explicitly state they are not yet binding.
Example: Before lawyers draft a 50-page lease, the tenant and landlord sign an LOI agreeing on rent, term, and TI allowance to confirm the deal's framework.