The real estate letter of intent (LOI) is a document that broadly outlines the terms of a real estate purchase or lease. The goal of the letter of intent is to negotiate terms between an owner and a potential buyer or tenant. The letter of intent is a non-binding agreement that once executed, the parties will forward it to their respective counsel for the final purchase and sale agreement or lease agreement to be drafted. The letter of intent spells out terms of a potential deal without the costly legal fees associated with the drafting of a formal purchase and sale agreement or lease agreement. Always obtain legal counsel before using a letter of intent.