I recently submitted an pre-LOI offer. The broker came back and said they're making a final decision tomorrow and wants an LOI. I'm fine with that, however, the broker mentioned the next step would be signing their redacted formal APA within 5 days that would be legally binding. The LOI template the lender provided has similar language:

"Asset Purchase Agreement ("APA"): Prior to expiration of this LOI (5 days) and prior to Closing, Buyer and Seller will execute a binding APA based on the terms of this LOI and additional terms and conditions acceptable to both parties. The APA will include customary terms, such as representations, warranties and indemnities and be prepared using:"

Is this a typical progression? This is my first acquisition, but my understanding is that LOIs generally cover the due diligence period. Upon completion of diligence, the buyer's lawyer draws up an APA and both parties sign it at closing.