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A Memorandum of Sale records the key details of a property transaction after a seller accepts an offer but before the formal exchange of contracts. It's commonly prepared by estate agents in England and Wales to outline the agreed purchase price, the buyer's and seller's details, and the property specifics.

While not legally binding like the final contract, this document helps solicitors start their conveyancing work and signals serious intent from both parties. It typically includes information about any special conditions, proposed completion dates, and confirms if the sale is subject to mortgage approval or chain dependencies.

Estate agents prepare a Memorandum of Sale immediately after a seller accepts an offer on a property. This document becomes essential when moving from verbal agreement to formal legal process, especially in cases where multiple parties need clear confirmation of the sale terms.

The memorandum proves particularly valuable during complex property chains or when dealing with mortgage lenders who require written evidence of the agreed sale. It helps prevent misunderstandings about price, timelines, or special conditions, and gives solicitors the key information they need to begin conveyancing work promptly.

• Memorandum Of Agreement Of Sale: Standard format used for most property transactions, covering basic sale terms and conditions
• Memorandum Of Understanding For Flat Sale: Specifically tailored for leasehold properties, including details about service charges and ground rent
• Bill Of Sale Memorandum Of Installment Sale: Used when payment is structured in installments, outlining payment schedule and terms
• Memorandum Of Agreement For Sales Commission: Focuses on estate agent commission arrangements and payment terms

• Estate Agents: Usually prepare and issue the Memorandum of Sale after an offer is accepted, coordinating between all parties
• Property Sellers: Confirm the sale details and their acceptance of the offer terms
• Property Buyers: Review and receive the document as confirmation of their accepted offer
• Conveyancing Solicitors: Use the memorandum to begin legal work and verify transaction details
• Mortgage Lenders: Often require the memorandum as evidence of the agreed sale before processing loan applications
• Chain Agents: Reference the document to coordinate linked property transactions in a chain

• Property Details: Gather full address, property type, and any special features or fixtures included in sale
• Party Information: Collect full names, contact details, and addresses for both buyer and seller
• Sale Terms: Document the agreed purchase price, deposit amount, and proposed completion date
• Chain Status: Note if buyers or sellers are in a chain and capture relevant dependencies
• Financial Details: Record mortgage requirements, cash buyer status, or special funding arrangements
• Special Conditions: List any agreed conditions, such as survey requirements or repair works
• Agent Details: Include estate agent contact information and agreed commission terms

• Property Description: Full legal address, freehold/leasehold status, and included fixtures/fittings
• Party Details: Legal names and current addresses of buyer, seller, and their solicitors
• Price Terms: Agreed purchase price, deposit amount, and payment method
• Transaction Timeline: Proposed exchange and completion dates
• Special Conditions: Any agreed repairs, survey requirements, or chain dependencies
• Agent Information: Estate agency details and commission structure
• Non-Binding Statement: Clear indication that this is subject to contract
• Date and References: Document date and any relevant property reference numbers

A Memorandum of Sale differs significantly from a Sale and Purchase Agreement in several key aspects. While both documents relate to property transactions, they serve distinct purposes in the conveyancing process.

• Legal Status: A Memorandum of Sale is not legally binding but rather documents initial agreement terms, while a Sale and Purchase Agreement creates enforceable legal obligations
• Timing: The Memorandum comes first, immediately after offer acceptance, whereas the Sale and Purchase Agreement is drafted during formal conveyancing
• Detail Level: Memorandums contain basic transaction details, while Sale and Purchase Agreements include comprehensive legal terms, warranties, and conditions
• Purpose: The Memorandum helps start the conveyancing process and inform relevant parties, while the Sale and Purchase Agreement legally transfers property ownership