Buyer Interest and Offers

Binding Terms

Parts of an agreement that are legally enforceable, such as confidentiality or exclusivity. Why it matters: Binding terms can create real obligations before closing, so owners should understand them before signing an LOI or process letter.

Related terms

Process Letter
Instructions sent to buyers explaining how to submit offers and what the seller expects. Why it matters: A process letter keeps buyers on the same schedule and helps the seller compare offers using consistent instructions.
Exclusivity
A period when the seller agrees not to talk with other buyers while one buyer completes diligence. Why it matters: Exclusivity gives one buyer control of the process for a period of time, which can be useful but may reduce seller leverage if the buyer retrades.
Closing
The moment when the sale officially happens and ownership transfers. Why it matters: This term affects what must happen at closing, how money moves, and how final obligations are documented.
LOI
Short for letter of intent. Why it matters: Even if most LOI terms are non-binding, the LOI often shapes negotiating leverage for the rest of the process.

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