LOI — Letter of Intent
- Short
- Non-binding
- Establishes price and terms
- Gets the conversation going
- Ideal for first-time buyers
PSA — Purchase & Sale Agreement
- Binding
- Sets legal terms
- Includes DD period
- Includes deposit
- Usually drafted after LOI is agreed upon
Buyer takeaway:
You do NOT need a PSA to start a deal — an LOI is often the perfect starting point.
