Buying or selling a home is an exciting milestone, but it can also feel overwhelming with all the paperwork and processes involved. One of the first documents you’ll come across is the memorandum of sale. But what does a memorandum of sale mean, who issues a memorandum of sale, and what happens after a memorandum of sale?
In this guide, we’ll explain everything you need to know, including when it’s issued and how long it takes from memorandum of sale to completion.
What exactly is a memorandum of sale?
A memorandum of sale is a document that outlines the key details of a property sale after an offer has been accepted. It’s essentially a summary of what’s been agreed between the buyer and the seller.
While a memorandum of sale is not legally binding, it plays an important role in starting the legal side of the buying and selling process.
Related: What is conveyancing?
What’s included in a memorandum of sale?
The document includes:
- Property address: The full address of the property being sold.
- Agreed sale price: The price the buyer has offered and the seller has accepted.
- Contact details: Names and contact information for the buyer and the seller.
- Solicitor/conveyancer details: The legal representatives for both parties.
- Estate agent details: Contact information for the estate agent managing the sale.
- Property type: Whether the property is freehold or leasehold.
- Fixtures and fittings: Details of any items included in the sale, such as appliances or furniture.
- Land registry number: A reference number that verifies ownership.
- Funding details: Whether the buyer uses a mortgage or cash to fund the purchase.
- Proposed timelines: Expected dates for exchanging contracts and completing the sale.
This document is a central reference point, ensuring everyone involved is on the same page.
Why is a memorandum of sale important?
While the memorandum of sale is not legally binding, it’s a crucial step in the property transaction process because:
- It creates clarity: All the key details of the agreement are recorded in one place.
- It starts the legal process: Solicitors and conveyancers use the document to begin their work.
- It reduces confusion: Misunderstands are less likely with everything clearly laid out.
In short, it sets the tone for a smoother property transaction.
Who issues a memorandum of sale?
If you’re wondering, ‘who issues a memorandum of sale?’ it’s typically the estate agent handling the sale. Once the seller has accepted an offer, the estate agent prepares the document and sends it to:
- The buyer’s solicitor or conveyancer.
- The seller’s solicitor or conveyancer.
- Both the buyer and the seller.
This typically happens within a few days, although delays can occur if one party hasn’t appointed a solicitor or if some details are missing.
For help with finding a solicitor to progress your sale, contact your local branch
When is a memorandum of sale issued?
It’s usually prepared right after an offer is accepted by the seller. In most cases, the estate agent will issue the document within a few days. However, if either the buyer or seller hasn’t appointed a solicitor or there’s missing information, it could take a little longer.
What happens after a memorandum of sale?
Once the memorandum of sale is issued, the legal work begins. Here’s an overview of what you can expect next:
- Solicitors start their work: Legal representatives for both parties begin reviewing documents and carrying out legal checks.
- Surveys and searches: The buyer might arrange a survey, and their solicitor will conduct property searches.
- Mortgage arrangements: If the buyer needs a mortgage, they’ll finalise the details with their lender.
- Contract drafting: Solicitors prepare and review the contracts.
- Exchange of contracts: Once everything is in order, contracts are signed and exchanged, making the sale legally binding.
- Completion: Ownership is officially transferred to the buyer, and the sale is finalised.
Straightforward communication between the buyer, seller, estate agent, and solicitors is essential during this stage.
How long from memorandum of sale to completion?
On average, it takes around six months to complete a property sale, from initial marketing to finalising the deal. However, the time between issuing the memorandum of sale and completion can vary depending on:
- The length of the property chain.
- Mortgage approval delays.
- Issues uncovered in property surveys
- How quickly paperwork is processed
The best way to avoid unnecessary delays is to stay in regular contact with your solicitor and respond promptly to any requests for information.
Can a buyer or seller pull out after a memorandum of sale?
Because the memorandum of sale is not legally binding, either party can pull out of the sale without facing legal consequences until contracts are exchanged.
Common reasons for withdrawing include:
- Survey results revealed unexpected issues with the property
- Mortgage funding falling through
- A change in personal circumstances
While it can be disappointing when a sale falls through, it’s important to remember that it isn’t legally binding until contracts are signed and exchanged.
How can Martin & Co help?
Buying and selling a home can be a big task, but with clear communication and understanding, it doesn’t have to be stressful. The memorandum of sale might sound formal, but at its core, it’s simply a document designed to keep everyone on the same page.
It helps set expectations, reduces confusion, and ensures the legal process can start without delays. Our team at Martin & Co is here to guide you through each stage, offering clear advice and keeping things simple from start to finish.
If you’re buying or selling a property, get in touch with your local Martin & Co branch — we’re here to help.
