What is a memorandum of sale?

A memorandum of sale is an important part of the property buying and selling process, but what exactly is it and what is it used for?

What is a memorandum of sale?

A memorandum of sale is a document that records the amount of money being paid for a property. It includes the names of both the property seller and buyer, and the names of the solicitors acting for both parties.

When is a memorandum of sale issued and by whom?

One will be put together by the estate agent selling a property as an official notification of sale. This will happen once an offer has been accepted. 

If it is a private property sale and there isn’t an estate agent involved, the seller will usually put together the memorandum of sale and distribute it.

What does a memo of sale contain and who is it circulated to?

It should include:

• The seller’s details
• The buyer’s details
• Solicitors’ details for both parties
• Information about the property, including whether it is freehold or leasehold
• The agree price
• Details of any property chain the buyer or seller are involved in
• The buyer’s financial arrangements and mortgage lender (if applicable)
• Details of the proposed timescale for exchange of contracts and completion of the sale

The document will be sent to the buyer, the seller and both solicitors

What does a memo of sale look like?

Estate agents will all use a similar template. It will look like a simple letter that outlines the information above.

How quickly will I receive the memo of sale once the offer has been accepted?

Timescales will vary, depending on how quickly the required information can be gathered. The estate agent should already have all of the information they need about the property and the vendors, but will have to wait for the buyer to provide details of funds for the sale and their chosen solicitors. If you haven’t received it within a week of having a sale agreed, you may wish to contact the estate agent to enquire about when you can expect to receive it.

What happens after a memo of sale has been sent out?

Once the memo of sale has been created, the conveyancing process will begin. It serves as confirmation for both the buyer and seller that a sale has been agreed, and gives both solicitors the information they need to move forward with progressing the sale.

How long after a memo of sale will a house sale complete?

The average property sale takes 2-3 months from the point of a sale being agreed, however it can take longer if you’re part of a property chain.

Is a memo of sale a legally binding document?

Whilst a it records the intention of a buyer to purchase a property, it is not legally binding. It can be useful to think of it as the paperwork associated with an offer being accepted on a property, rather than it being sold. A property sale does not become legally binding until sales contracts have been exchanged.

Find out more about:

• Should I get a property survey when I buy a house?
• What is a structural survey?
• When was my house built?
• What is a memorandum of sale?
• What are title deeds?
• What is a property bridging loan?
• Can I sell my house with an ongoing neighbour dispute?
• My house is not selling – what can I do?
• A guide to property indemnity insurance
• Making an offer before selling your existing home