Illinois Real Estate Exam Practice Question
A letter of intent
Correct Answer: B
Rationale: A letter of intent primarily serves as a preliminary agreement outlining the intentions of the parties involved, making option B accurate as it indicates the letter's role in guiding further negotiations.
Option A is incorrect; while it may indicate intent, it typically lacks binding legal force unless explicitly stated. Option C is misleading; a letter of intent usually does not contain all transaction terms, as it is often a summary rather than a comprehensive contract. Lastly, option D is not universally applicable; letters of intent are commonly used in various contexts, including larger commercial transactions, not just small residential ones.
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