Memorandum Of Sale
Most people are unfamiliar with the term Memorandum Of Sale or fully appreciate it’s importance.
This is however; a term you will encounter when buying or selling a house. There exist specific instances where in most likelihood you will be required to obtain a memorandum of sale.
- If you’re a prospective buyer wanting to submit a mortgage application.
- You’re a seller wanting to sell your house fast.
Our article will undoubtedly explain the concept of a memorandum of sale, what it contains, when it is issued, why it’s relevant, and other useful information to help you understand what the document is.
What is a memorandum of sale
A prospective buyer’s interest in procuring a property and the terms of a property sale are recorded in a document referred to as ‘A Memorandum of Sale’. Although it is not a legally binding contract, a memorandum of sale acts as written confirmation that a price has been agreed by both parties. It clearly declares the intention of both parties to complete the sale of the property.
Contents of a memorandum of sale
- Names and contact details of both the property seller and buyer.
- Complete details of the solicitors acting for each party.
- Property address, tenure, details of lease and any special conditions.
- The agreed price for the property including proposed deposit amount, which is usually 10%.
- Mortgage lender (where applicable).
Additionally the document should capture and include any special conditions. Anything that deviates from the standard conditions of sale should be included in the document.
Importance of a memorandum of sale
The signing of a memorandum of sale provides written evidence that a sale offer has been accepted. This constitutes the first step of the buying and selling process. This is a critical step to the final contract and plays an essential part in paving the way for surveying and investigating the property.
Issuance of a memorandum of sale
A real estate agent will typically draft the document once an offer has been made, received and accepted. The buyer or seller are legally obligated to follow the conditions of the memorandum. This essentially means that the document is subject to changes, alterations or negotiations.
Following from the signing of the memorandum a buyer has the obligation to verify the suitability of the property.
The process should be a prior to the conclusion of the final purchase.
A memorandum of sale is significantly important for benefits of procuring one make it worth taking the time to familiarise yourself with it. If your ultimate objective is to buy or sell a property quickly, contact our experienced professionals here at Be Forward Real Estate who will happily and competently assist you.