Option Agreements vs Letters of Intent

[Terry Royce]

What are the advantages and disadvantages of each in your guys opinions?

They both seem to serve the same purpose to me.

[Will Barnard]

LOI's are used mostly for commercial offerings. They have no legal standing or give you equitable interest in a property. It is simply a format to start negotiations in route to a PSA.

An option contract only gives you the right to excersie the option under the terms and does not give you equitable interst in the property and therefore you can not flip the property by advertising it for sale as if it was owned by you. You may, however, offer the option contract for sale (if contract stipulates it) and thus, flip the contract, somewhat like assigning a PSA.