What is a Memorandum of Sale?

What is a memorandum of sale?

A memorandum of sale is a document produced once a buyer and seller have agreed on a price for a property. It acts as written confirmation that an offer has been accepted and outlines the key details of the agreed sale.

Although it’s not a legally binding contract, the memorandum of sale is a crucial step in the conveyancing process. It ensures that all parties involved are working from the same information before legal work begins.

When is a memorandum of sale issued?

A memorandum of sale is typically issued shortly after an offer has been formally accepted. This usually happens once the estate agent or online selling platform has confirmed the buyer’s details and the agreed price.

Once issued, the document is sent to the buyer, the seller, and both parties’ solicitors or conveyancers so they can begin the legal process.

What Information is Included in a Memorandum of Sale?

A memorandum of sale will contain as much relevant information as possible. This will include (but is not limited to) the following:

• The address of the property for sale
• The contact details of both the seller and the buyer
• The contact details of both parties' solicitors
• Whether the property is freehold or leasehold; in the case of a leasehold property, it will also detail how many years remain on the lease

After the sale price has been agreed, it is wise to appoint a solicitor as soon as possible to enable the legal process to begin.

Who Issues the Memorandum of Sale?

The memorandum of sale is drawn up by the estate agent and sent to all parties involved; the buyer, the seller and both solicitors. As the document has to include solicitors' details, as well as sent on to them once completed, it cannot be drawn up until these details have been provided.

With our online platform at Emoov, it's an uncomplicated process to upload these details after the offer has been accepted.

This is the screen the seller will see once the offer has been accepted. In the green bar, click on the UPLOAD SOLICITOR'S DETAILS button.

The following screen will ask the seller to input the details of their solicitor. The buyer will also be requested to do the same.

Once we at Emoov have these details, we will issue the memorandum of sale and send it to all relevant parties, getting the legal process underway.

Is a memorandum of sale legally binding?

No, a memorandum of sale is not legally binding. Either party can still withdraw from the sale at this stage without legal penalty.

The sale only becomes legally binding once contracts have been exchanged. Until then, the memorandum simply records the agreed intention to proceed with the transaction.

Why is a memorandum of sale important?

While it doesn’t offer legal protection, a memorandum of sale plays an important role in keeping the sale organised and moving forward.

It ensures solicitors have accurate details, helps prevent disputes over agreed terms, and signals that the transaction has moved beyond negotiations and into the legal phase.

Delays or errors at this stage can slow the entire process, so issuing the memorandum promptly and accurately is essential.

What happens after a memorandum of sale is issued?

Once the memorandum of sale has been sent, the conveyancing process begins. Solicitors will start legal checks, raise enquiries, and arrange searches and surveys.

From this point, progress depends on factors such as mortgage approvals, property chains, and the speed at which enquiries are resolved.

If you have any questions or concerns about the memorandum of sale, please call us on 0345 561 0050, or send us an email at info@emoov.co.uk.

Summary

A memorandum of sale marks an important milestone in the home buying and selling process. While it doesn’t legally bind either party, it confirms the agreed details of the sale and allows conveyancing to begin.

Understanding its role helps buyers and sellers know what to expect next and how to keep their transaction progressing smoothly towards exchange of contracts.

Useful Links

• How to create and manage property offers
• A beginner’s guide to the conveyancing process
• How long is a property chain?
• When property offers fall through - a guide for sellers and buyers
• Sell your property with Emoov

Images are from a semi-detached property for sale in Gildersome village, Leeds (August 2023). For the full listing, please click here.