What is a Memorandum of Sale?

The term 'memorandum of sale' may sound like incomprehensible legal jargon, but it's actually reasonably straightforward. Once a buyer has agreed to purchase a property at the seller's desired price, a memorandum of sale is issued. This is not a legally binding document; moreover, it signals the intent of the buyer to purchase the property and the owner's intent to sell at the agreed price.

The memorandum of sale is not a contract and has no formally prescribed format as such the actual document will vary from agent to agent. Once sent by the agent it does set the legal process in motion. In most cases, the memorandum of sale is sent out before the survey is carried out (in exceptional circumstances a survey may be done first, such as in the case of derelict properties).

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 Griffin Property Co, 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 Griffin Property Co have these details, we will issue the memorandum of sale and send it to all relevant parties, getting the legal process underway.

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 [email protected].

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