Memorandum of Sale – What You Need to Know in 2024

Are you reaching the stage of house-buying where a memorandum of sale needs to be issued? You’ll no doubt be wondering ‘what is a memorandum of sale?’. Or perhaps you’re considering buying or selling and want to know the exact process you’ll be following once a sale is being negotiated.

With over 15 years of experience as trusted estate agents in the North West behind us, the property experts at JonSimon are here to give you simple answers to these all-important questions.

If you’re looking to make a property change like buying a house or selling a rented property, get in touch today to get the ball rolling with JonSimon’s experienced team. Simply email info@jonsimon.co.uk or call our Burnley, Radcliffe or Ramsbottom team.

What is a memorandum of sale?

The memorandum of sale document confirms the key details of the sale, regarding the property, the buyer and the seller. It acts as a summary of the sale and can sometimes be known as a ‘Notification of Sale’. Issuing this document signifies to all parties that the property is no longer ‘Under Offer’ and has moved to the status ‘Sold STC’.

Memorandum of sale meaning: Simply put, the memorandum acts as a written record of an offer on the property which has been accepted and which is viable to take place.

What does a memorandum of sale look like?

The document typically covers:

Details about the property

• Confirmation of the address of the property
• HM Land Registry number and confirmation of ownership to check that the buyer does in fact have current possession of the property
• Agreed sale price
• Confirmation of the address of the property
• Whether the property is freehold or leasehold – if leasehold, how many years remain on the lease
• If it’s an auction property, the date of when the hammer fell and who the auction company enabling the sale of the property were
• Whether fixtures and fittings are included in the property sale or any exclusions
• Any other relevant information to the sale of the property such as notable legal issues that might hold the sale up pending investigation e.g. right-of-way disputes

Details about the buyers and sellers

• Contact details for the buyer and seller, such as phone number, email and current address, including whether it’s being bought by individuals or a company
• Details of the solicitors representing both parties
• Which mortgage lender the sellers have opted for and confirmation of the mortgage in principle and the name of the broker if acquired through one
• How much the deposit is, the percentage of the property value that the
• Desired completion date (if possible) or any requirements on the date of the sale such as a delayed completion date
• Whether the deposit funds have been verified
• Details of the property chain, i.e. whether the sellers are buying a property and whether the completion of this property is dependent on this sale

What is the purpose of a memorandum of sale?

In other words, what is a memorandum of sale used for? In practical terms, the memorandum signifies that the sale is ready to move forward into conveyancing.

It’s important to know that although the memorandum of sale is passed on to legal professionals in conveyancing, it is not a legal document. It also isn’t signed by either party in the sale. Its purpose is to signify the intent of both parties to move forward with the sale and hold the key information in one place.

As the information is highly sensitive and confidential often you won’t see the memorandum, even if it’s your property.

What happens after the memorandum of sale is issued?

The memorandum is passed on to both the buyer and seller’s solicitors to indicate that they should proceed with the conveyancing process. Both the buyer and the seller will work with their solicitors to exchange any necessary documents and details to draw up the legal sales contracts, including the title deed transfer.

This is the point in the process where the buyer will issue any surveys to check on the condition of the property. Both parties will liaise with their solicitors with the information to progress the sale and sell your house.

Book your free valuation today with JonSimon

Whether you’re buying a new property or selling your current one, JonSimon can help. We have decades of experience selling properties in the North West and hundreds of reviews from customers about their positive experience with our team.

To get in touch, just email info@jonsimon.co.uk or call our Burnley, Radcliffe or Ramsbottom team. If you’re on the hunt for a new property to call home in Manchester or Lancashire, check out our latest property listings.

FAQs

Is a memorandum of sale legally binding?

No, a memorandum of sale for a property is not legally binding. It is simply a typical part of the property sale process and a key document for solicitors to have which holds the essential details of the upcoming sale in one place.

How to get a memorandum of sale

The memorandum of sale is drawn up by estate agents selling the property, such as one of JonSimon’s property experts.

Who receives the memorandum of sale?

The memorandum is sent to the conveyancing solicitors for both the buyers and the sellers.

How long will it take after the memorandum of sale to completion?

The length of time to complete will depend on many factors including how long the property chain is, how many surveys and checks are required and if there are any peculiarities to the property that slow the legal process.

The average time for a property to go from offer to completion in the UK is usually somewhere around 3-6 months but this will vary for different counties and urban vs. rural areas.

How long does a memorandum of sale take to be issued?

The process of putting together the memorandum of sale should not take long, which might be good news for you if you’re trying to sell your house fast. The process involves gathering information from the buyers and sellers by the estate agent selling the property. Typically, this will take only days.

Can you pull out after a memorandum of sale?

Yes. There are no legal ramifications for pulling out of the sale once the memorandum has been issued.