Also called letter of intent
LOI, explained
LOIs appear in larger deals, especially when a company's legal or finance team needs paperwork before approving a purchase. A typical one names the domain, the price and currency, payment through a named escrow service, who pays the escrow fees, the transfer method and deadline, and the seller's statement that it owns the name free of disputes or liens. It may add confidentiality and a short exclusivity period in which the seller agrees not to negotiate with others.
LOIs are usually written as non-binding on the sale itself, with only some clauses, such as confidentiality, binding. Until the purchase agreement is signed and escrow is funded, the deal can still fail, so a seller should not turn other buyers away early or accept a long exclusivity period. Read the warranty and indemnity language carefully, and for a significant deal consult a qualified attorney before signing.
Example. Before its finance team would release funds, the buyer sent a one-page LOI fixing the agreed price, naming the escrow service and giving the seller ten business days to start the transfer.
Go deeper How to Sell a Domain Name: A Seller's Guide
Free to read, no signup. The list is for news of the course itself.
Join the waitlistEducation, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.
