When buying property in the UK, you will encounter a large number of legal documents In this article, we at Quick Property Buyer are going to look at one of the first documents produced after an offer has been accepted, called the Memorandum of Sale. Sometimes it has also been called a “Notification of sale”, but it is the same document
The Memorandum of Sale is usually sent out within a few days of an offer being accepted. Because it clarifies the headline terms, the earlier this document is sent out the better. The estate agent, auction house or Quick Property Buyer Company will draw the Memorandum of Sale up and send it out to relevant parties. It is a document that sets the main details and terms of the property sale.
The document usually includes:
- Property details and Agreed Price: The full address, whether it is leasehold or freehold and the land registry number;
- Timescales for exchange and completion;
- Any special terms;
- Details of the deposit to be paid at exchange;
- Any legal points to be considered and other observations;
- Details for the Buyer, Seller, Solicitors’, estate agent’s details, mortgage broker and Mortgage lender.
It is not legally binding. The actual legal terms of the sale will be included in the sales contract which is signed on or before exchange. Therefore the terms of your property deal only become legally binding at the exchange stage, not when the Memorandum of Sale is issued. T
The Memorandum of Sale can be very useful in flushing out any mistakes of either party. As many property sales may be agreed over the phone (although our recommendation would be to do as much as possible in email) misunderstandings can and do occur.
Contact the estate agent, if you have not received the Memorandum of Sale within a few days of the offer being accepted. The estate agent may not be the most efficient, which is not a great sign of things to come. Being cynical, it could also mean that the seller has not committed to the sale yet. So keep checking the online portals to check it has been taken off the market.
The Memorandum of Sale may seem official and daunting, but do not be overly concerned as it is not a legally binding document. If you would like to know more or are looking to sell a property quickly, please do contact our friendly team here at Quick Property Buyer who would love to assist you.