TRANSACTION & CLOSING

LOI

Also called: letter of intent · term sheet

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PLAIN-ENGLISH DEFINITION

A preliminary document outlining major proposed deal terms before definitive contracts are negotiated.

What it means in practice.

LOIs often address price, deposits, diligence, financing, closing, access and exclusivity. Whether provisions are binding depends on drafting and governing law.

Why it matters.

In a 1031 acquisition, the LOI should reflect realistic exchange and financing timing.

Additional notes.

LOIs often address price, deposits, diligence, financing, closing, access and exclusivity. Whether provisions are binding depends on drafting and governing law.

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