Do You Really Know the Difference Between an LOI and a Purchase Agreement?
It’s a question that comes up all the time in commercial real estate — and surprisingly, even seasoned pros mix them up. The Letter of Intent (LOI) and the Purchase & Sale Agreement (PSA) might look similar on the surface, but they play very different roles in a transaction.
The LOI is your roadmap — a way to outline key terms and test alignment before locking into legal commitments. The PSA, on the other hand, is where things get real. It’s the binding agreement that sets everything in motion for closing.
I’ve seen deals go sideways because one side treated an LOI like a contract or rushed into a PSA too soon. That’s why I put together a short guide explaining when and how to use each effectively — and how to protect your client’s position in the process.
👉 Read it here: Commercial Real Estate Guide to LOI vs. Purchase Agreement
How do you handle the LOI stage? Do you prefer a detailed or brief outline before drafting the PSA?
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