In this article, we at Quick Property Buyer will look at one of the first documents circulated when buyer property, the Memorandum of Sale. It can also be called the Notification of Sale.
I. Memorandum of Sale. What is it?
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.
II. The Memorandum of Sale: When is it sent out?
The estate agent should send out the Memorandum of Sale within a few days of an offer being accepted.. Because it clarifies the headline terms, the earlier this document is sent out the better.
III. What if the estate agent does not send the Memorandum of Sale?
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: Why is it important?
The Memorandum of Sale can be very useful in flushing out any mistakes of either party, before instructing the solicitors and incurring costs. 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. The issuance of the Memorandum of Sale is the stage that records that a sale has been agreed. If the property has not already been taken off the market, this document should trigger the property coming off, with Sale Agreed being put on relevant websites.
- Is a Memorandum of Sale legally binding?
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. The Memorandum of Sale reflects the understanding of the parties in advance of proceeding to the contract stage. It is not usually a document the parties would sign.
- The Memorandum of Sale: What information should it have?
The Memorandum of Sale should contain the details of the property, the sale, the parties involved and any terms of the transaction that may be specific to the transaction. The more information the better.
VIII. Summary
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.