Why do LOI's seem to be requested in the initial stage of an offer over a full contract with all details included?
Lately I have been putting in multiple offers on CRE with listing agents coming back saying they want LOIs instead of full contracts, intially.  Seems like a duplication of efforts when the offered contract has all the details the buyer is offering.  Could anyone offer their opinion as to why listing agents would do this?
[{"id": "ijz8td0", "text": "To keep other potential offers open on the table still they can have details with the time to choose which potential offer would be best.", "replies": [], "depth": 1}, {"id": "ijz9v1i", "text": "To ensure the larger deal terms can be agreeded upon prior to spending the time and money drafting a lease agreement.", "replies": [{"id": "ijzbfg3", "text": "Makes sense, however these offers have been on NNN deals, so the lease is already set.  Would that make a difference?  On the surface, NNN deals seem pretty strait forward, what might I be missing?", "replies": [{"id": "ijzkzbt", "text": "Deals and leases are as simple or complicated as you (or the parties) make them. There are thousands of major questions, items, or issues that could be presented before a contract is drawn up.\n\nWhat if land owner wants to develop the land that the NNN lease is on? How do you value the land/lease/buyout clause?\n\nWhat is there is partnership opportunities, sub-divisions and sales, transfer clauses, etc etc.\n\nThe LOI spells all of these terms out first, to be agreed upon, and then drawn up after agreed and accepted.", "replies": [{"id": "ik0p18r", "text": "Good points, thanks.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ik365ja", "text": " Realtors can only write offer on 1-4 family unit and vacant lots. Writing up a commercial contract was ruled an unauthorized practice of law. That's why they do letters of intent. At least that's the case in New Jersey", "replies": [], "depth": 1}, {"id": "ik4wf2g", "text": "Good point, not sure that applies in my state, but will check it out.  Overall, commercial deals seem to be like the wild West, anything goes and standardization is difficult to find in the process.", "replies": [], "depth": 1}, {"id": "ik5b1am", "text": "There are LOIs (letter of intent) and there are PSAs( purchase and sale agreement). The LOI is a two page document that makes it quicker/easier to submit an offer and iron out the basic deal points between buyer and seller (price, timeline, etc)  its nonbinding, but if they can agree on terms and mutually sign the LOI they will then spend the time, energy and money drafting a binding PSA, which can be a 15-20 page document (or can even be  40+ pages drafted by expensive lawyers, it depends\u2026) Sometimes people skip LOIs and go straight to PSA, but most people prefer LOIs as they save everybody a lot of time. (This is all for the purchase of a property. The leases being simple or complex is a separate issue.)", "replies": [], "depth": 1}, {"id": "ikdj27d", "text": "The LOI starts the conversation. This shows the seller that the buyer is serious but is not going to pay thousands to their attorney to draft a purchase and sale agreement. The LOI is where the important details are discussed and agreed upon (price, DD period, earnest money amount, proposed closing date, financing etc.).", "replies": [], "depth": 1}]