In many real estate transactions, parties will enter into what is called a Letter of Intent or (“LOI”). An LOI is also sometimes referred to as a memorandum of understanding or a term sheet. An LOI is a written expression of the important terms of a proposed transaction which is generally signed by all parties to the transaction. The LOI serves as the basis for the negotiation of a final agreement. The LOI is not intended to include all of the terms of a real estate transaction, however, the LOI should include enough material terms so that the parties have some level of assurance that they will be able to effectuate a contract.
When drafting a contract for parties who have put forth a good faith effort to negotiate and agree upon material terms to a real estate transaction, it is important that your attorney take this effort seriously. An attorney should not insult the intelligence of the parties and should not misrepresent the intent of the parties by trying to be sneaky with the first draft of a definitive agreement. This is a waste of everyone’s time and a waste of your money. A real estate attorney should respect the parties to the transaction and respect the LOI. If you are in need of a respectful real estate attorney, contact The Henin Law Firm today for a free consultation.