Memorandum of Sale Explained (Don’t Sell Without This)
Key Takeaways:
- A memorandum of sale is issued after an offer is accepted, outlining key transaction details.
- It is not legally binding but helps kickstart the conveyancing process.
- Delays in issuing the memorandum can slow the sale, so ensuring all details are ready can speed things up.
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- What Is a Memorandum of Sale? (MoS)
- What Information Does a Memorandum of Sale Include?
- Who Issues the Memorandum of Sale?
- Is a Memorandum of Sale Legally Binding?
- How Long Does It Take to Issue a Memorandum of Sale?
- What Happens After a Memorandum of Sale Is Issued?
- What Can Delay the Memorandum of Sale Process?
- What’s the Difference Between a Notification of Sale and a Memorandum of Sale?
- Can You Pull Out After a Memorandum of Sale?
- Sell Your Property Fast Without the Hassle of Conveyancing
- Frequently Asked Questions
What Is a Memorandum of Sale? (MoS)
A memorandum of sale (MoS) is a document that summarises the key details of a property sale. The estate agent creates it after an offer has been accepted and serves as a formal record of the agreed terms. While not legally binding, it ensures that the buyer, seller, solicitors, and estate agents are aligned before the conveyancing process begins.
This is what a memorandum of sale template looks like in the UK:
What Information Does a Memorandum of Sale Include?
A memorandum of sale outlines the key details of the property transaction, ensuring that all parties involved have a clear record of the agreement. While the exact format may vary, it typically includes the following information:
- Property details: Full address and whether it is freehold or leasehold.
- Agreed sale price: The final purchase amount agreed upon by both parties.
- Buyer & seller contact details: Names, phone numbers, and email addresses.
- Solicitor details: Contact information for the legal representatives handling the sale.
- Land Registry title number: A unique reference identifying the property.
- Planned exchange and completion dates: Estimated timeline for when contracts will be exchanged and the sale completed.
- Purchase method: Whether the buyer is purchasing with cash or a mortgage.
Having this information in one document helps streamline the conveyancing process, reducing the risk of misunderstandings or delays.
Who Issues the Memorandum of Sale?
In most property transactions, the estate agent handling the sale is responsible for drafting and distributing the memorandum of sale. This is typically done within a few days of an offer being accepted to ensure the conveyancing process starts without delay.
According to co-op legal services on average conveyancing takes 12 weeks and that's if there is no chain. A clear MoS can help your sale stay on track to meet this average or even complete before it.
Can a Homeowner or Seller Issue It Themselves?
Yes, but it depends on the type of sale. In private sales or auction transactions, the seller may issue the memorandum themselves. However, in most cases, the estate agent or auctioneer is responsible for preparing and sending it to the relevant parties, including the buyer, seller, and their solicitors.
Is a Memorandum of Sale Legally Binding?
No, a memorandum of sale is not legally binding. Either the buyer or seller can pull out of the transaction at any point before contracts are exchanged without legal consequences.
However, the memorandum of sale serves as a record of intent, ensuring that all parties agree on the key details of the transaction. While it does not guarantee the sale will go through, it helps progress the conveyancing process smoothly by providing a clear reference for solicitors and estate agents.
Related Read: How to choose the right conveyancer for your needs
How Long Does It Take to Issue a Memorandum of Sale?
A memorandum of sale is usually issued within 24-72 hours after an offer is accepted. However, delays can occur if key details are missing or any party is unprepared.
Common Reasons for Delays:
- Solicitor not appointed: The process cannot proceed until both parties have legal representation.
- Mortgage approval pending: If the buyer is still waiting for their mortgage offer, the memorandum may be delayed.
- Missing information: ID checks, proof of funds, or property details that haven’t been provided can slow down the issuance.
Ensuring all necessary details are ready in advance can help speed up the process and prevent unnecessary delays.
What Happens After a Memorandum of Sale Is Issued?
Once the memorandum of sale is distributed, the property transaction moves to the conveyancing stage, where legal and financial checks take place.
Key Steps After the Memorandum of Sale Is Issued:
- Solicitors begin legal work: Both the buyer’s and seller’s solicitors review the memorandum and start handling the legal aspects of the sale.
- Buyer arranges surveys and mortgage approvals: If required, the buyer will organise a property survey and ensure their mortgage application is finalised.
- Conveyancing process begins: Solicitors conduct local authority searches, draft contracts, and review legal documents to prepare for the exchange of contracts.
- Exchange and completion: Once both parties are satisfied with the legal process, contracts are exchanged, and the sale is completed.
How Long Does the Process Take?
The typical timeframe from memorandum of sale to completion is 8-12 weeks, but this can vary depending on factors like property chains, legal complexities, or mortgage delays. Keeping in regular contact with solicitors and estate agents can help speed up the process.
We recently worked with a homeowner who was struggling with conveyancing issues. They were frustrated that their estate agent wasn’t acting quickly, which was holding up the sale.
From the outset, the company was honest and went through the process without pressurising me. After having tried the market and having a couple of sales fall through, I decided to take the cash offer. They did as they said and kept me informed throughout and completed within 2 weeks. Would defo recommend!
At Housebuyers4u, we stepped in to handle the process, ensuring all necessary documents were in place and moving the sale forward without unnecessary delays.
What Can Delay the Memorandum of Sale Process?
Delays in the memorandum of sale process often occur due to slow solicitor responses, mortgage approval hold-ups, or issues within the property chain. If a buyer’s mortgage isn’t finalised or a survey reveals unexpected problems, the process can stall. Solicitors waiting on missing documents or failing to respond promptly can also slow things down.
Expert Advice from Our Property Expert, Paul
We’ve seen how small delays in the memorandum of sale process can have a knock-on effect on the entire transaction. Paul, our property expert, shares this key advice:
"One of the biggest causes of delays is missing solicitor details. If a buyer or seller hasn’t appointed a solicitor yet, the estate agent can’t issue the memorandum of sale, stalling the process. From our experience, ensuring that both parties have legal representation before the offer is accepted can save days or even weeks."
What’s the Difference Between a Notification of Sale and a Memorandum of Sale?
A notification of sale and a memorandum of sale are essentially the same document, with the terms often used interchangeably by estate agents. Both serve as a formal record confirming that a property sale has been agreed upon, outlining key details such as the buyer and seller’s information, agreed price, and solicitor details.
Can You Pull Out After a Memorandum of Sale?
Yes, either the buyer or seller can withdraw from the sale at any time before contracts are exchanged, as the memorandum of sale is not legally binding.
What Happens If You Pull Out?
While there are no legal consequences, withdrawing from the sale can have drawbacks, including:
- Losing money spent on legal fees, surveys, or mortgage applications.
- Damaging trust with the estate agent or the other party may make future negotiations more difficult.
If you're concerned about a sale falling through, selling to a cash buyer can provide a faster, more secure transaction without the risk of delays or withdrawals.
At Housebuyers4u, we know that one of the biggest frustrations for sellers is a buyer pulling out after the memorandum of sale has been issued. This often happens because of mortgage issues, slow legal processes, or second thoughts.
Our advice: If you’re looking for certainty, selling to a cash buyer eliminates the risk of delays or fall-throughs, as there’s no chain and no reliance on mortgage approvals.
Sell Your Property Fast Without the Hassle of Conveyancing
Dealing with the conveyancing process can be slow and complicated. If you want to sell your house quickly without the hassle, Housebuyers4u can help. We buy properties for cash, allowing you to avoid legal delays, skip lengthy paperwork, and complete your sale in days.
Whether you're transferring ownership, selling due to inheritance, or simply need a fast house sale, our service gives you a guaranteed cash offer with no fees or hidden costs. Get in touch today to sell your property hassle-free!
