What Is A Memorandum Of Sale?

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What Is A Memorandum Of Sale

What is Memorandum of sale?

A Memorandum of sale is a document that is required when selling a property in the United Kingdom. It can be difficult to understand, but this article will tell you everything you need to know. The memorandum is used by both the potential buyer and seller to record the terms of the purchase agreement as a sales contract. It is made up of several components that serve different purposes. The main parts of the memorandum are the parties, property description, price, terms, and conditions.

It is a document that gives you information about the status of the property, its condition and the things that you should know about it before you purchase it. This document helps you to make an informed decision about the property and avoid unpleasant surprises later on. It is a document that is signed by the seller as well as the buyers. It is usually a form that is created by a third-party company that is engaged in the business of real estate. This document explains the details of the transaction between the buyer and the seller.

After viewing a property, the potential buyer may make the seller an offer. The offer can either be for the advertised price or lower. If the seller accepts the offer, then both buyer and seller move to the next stage of the transaction where each informally agrees with the terms of the other.

The memorandum of sale – sometimes called the notification of sale – records the fact that both the prospective buyer and the seller of a property have come to a purchase agreement about price (and possibly other terms) that would allow the property sale to go ahead.

It’s important to note that the memorandum of sale is not a legally-binding document. All the memorandum of sale does is record the terms under which both parties initially agree to complete the transaction. It does not demand that the sale must go ahead – new information about the property could come to light in the interim.

Memorandum of sale documents, for instance, can including information about the timing of the transaction or additional conditions the potential buyer might attach to the property. The document, for example, could stipulate that for the potential buyer to agree to the sale of a property valued at £300,000, the seller must vacate the property before June 1st. If the seller cannot leave the property by that date, then the terms of the transaction are liable to change.

Similarly, the porspective buyer might agree to buy a house for £300,000, but only if the seller includes fixtures and fittings. The buyer, for instance, might insist that the blinds, shower units, and kitchen cabinets remain. If they don’t, then the transaction is void.

The Exchange Of Contracts And The Memorandum Of Sale

The memorandum, as discussed, is not a legally binding document. It’s a sort of informal agreement – a notice that each party can agree on before the sale completes. The exchange of contracts is the legally binding stage – the part where both parties submit to the sale and can’t have a change of heart. Once the exchange of contracts takes place, the seller must sell, and the buyer must buy.

Between the memorandum of sale and the signing of contracts, several things can happen.

First, the buyer may decide that they want a chartered surveyor to survey the property. The survey could throw up additional issues – such as problems with the foundations – and provoke the buyer to ask for better terms, like a lower price.

Second, the buyer may get a mortgage valuation to determine that the property is worth what they’re paying before contacting a mortgage lender. If the valuation professional thinks the house is worth less than the person wants to pay, then they will refuse the grant the mortgage, and the buyer will need to renegotiate the price with the seller.

Only once both parties sign the contract on the advice of their solicitors does the sale become binding.

Is a memorandum of sale legally binding?


A memorandum of sale is not legally binding, but it is an important document that is useful for the buyer and seller during the sale and purchase process. However, for the sale to be legally binding, you will also need to sign an Offer to Purchase, the Contract of Sale and the Sale and Purchase Agreement.

Who prepares the memoradum of sale document?


If you’re wondering who prepares and writes the memorandum of sale, the answer is probably the estate agent, auctioneers or solicitors.

What Happens after the Memorandum of Sale?


After the signing the memorandum of sale in the majority of cases, the prospective buyer will undertake mortgage pre-approval, to qualify for a mortgage to fund the deposit and purchase. However, if a property is subject to the sale being under offer or sold subject to contract, then the seller or estate agent has the option of agreeing to a binding contract, or retracting the property from sale. This process is usually handled both by the buyer‘s solicitor and seller‘s solicitor.



Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer. It is a process that takes place once the sale of the property is complete. Conveyancing is the legal transfer of ownership of property from one owner to another. It is also used to describe the legal process of borrowing money against the value of a property.

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