What Is a Memorandum of Sale?

If you are buying or selling a property, you may hear your estate agent mention a memorandum of sale once an offer has been accepted.

It is an important document in the property buying process, but if you have never moved home before, it may not be immediately clear what it is or what happens once it has been issued.

Here, we explain what a memorandum of sale is, what information it usually contains and what buyers and sellers can expect next.

A memorandum of sale is a document prepared once a seller has accepted an offer on their property.

It confirms the main details of the agreed sale and provides the information that the buyer's and seller's solicitors or conveyancers need to begin progressing the transaction.

The estate agent will usually issue the memorandum of sale to the relevant parties once the necessary information has been collected and the sale has been agreed.

You may also hear this stage described as a property being sold subject to contract, often shortened to SSTC.

What Information Is Included in a Memorandum of Sale?

The exact information can vary depending on the property and estate agent, but a memorandum of sale will generally include details such as:

The address of the property being sold
The agreed purchase price
The names and contact details of the buyer and seller
Details of the buyer's solicitor or conveyancer
Details of the seller's solicitor or conveyancer
Information about the property's tenure, such as freehold or leasehold
Relevant information about the buyer's position and the property chain

Its purpose is to make sure everyone involved has the core information required to move the sale forward.

If you're at an earlier stage and considering putting your property on the market, you can also explore our property sales service to see how we can support you from valuation through to completion.

Who Receives the Memorandum of Sale?

Once prepared, the memorandum of sale is normally shared with the buyer and seller, along with their respective solicitors or conveyancers.

This allows the legal side of the transaction to begin.

For buyers, this may include progressing mortgage arrangements, property searches and a survey. If you're unsure which type of survey may be appropriate, our guide to the different types of house surveys explains the main options.

For sellers, their solicitor will begin preparing the relevant documentation and information required for the sale.

At Oakheart, we continue to communicate with everyone involved and help keep the transaction moving as it progresses.

Is a Memorandum of Sale Legally Binding?

A memorandum of sale confirms the terms that have been agreed in principle, but it does not make the property transaction legally binding.

In England and Wales, buyers and sellers are generally able to withdraw from the transaction before contracts have been exchanged.

Exchange of contracts takes place later in the conveyancing process. It is at this stage that both parties become legally committed to completing the transaction.

This is why you may see a property described as SSTC even after a memorandum of sale has been issued.

How Long Does a Memorandum of Sale Take?

There is no fixed amount of time because the estate agent will first need to collect and verify the relevant information from both parties.

Having your solicitor or conveyancer arranged early can help avoid unnecessary delays.

Buyers can also make sure their mortgage arrangements and financial information are prepared, while sellers can instruct their solicitor before an offer is accepted so they are ready when a buyer is found.

Once all the required information is available, the memorandum of sale can be issued and the conveyancing process can move forward.

For an example of how the wider purchase process can progress, our guide to how long it takes to buy a house with no chain provides a useful timeline from offer accepted through to completion.

What Happens After a Memorandum of Sale Is Issued?

Issuing the memorandum of sale is really the beginning of the next stage of your move.

The buyer's and seller's solicitors will start communicating with one another, while a number of other steps may take place, including:

Drafting and reviewing contracts
Carrying out property searches
Arranging the buyer's mortgage
Completing a property survey
Raising and answering enquiries about the property
Agreeing dates for exchange and completion

How quickly everything progresses will depend on the circumstances of the sale.

A straightforward chain-free transaction may progress differently to a move involving several properties, for example.

If you are arranging finance, you may also find it useful to explore our mortgage and financial services for support with the financial side of your move.

Can a Memorandum of Sale Help a Property Sale Progress?

Although the memorandum itself does not guarantee that a sale will complete, having accurate information available early can help the transaction get off to a smoother start.

This is also where an experienced estate agent can make a considerable difference.

Good communication between the buyer, seller, solicitors and other parties can help identify potential delays early and keep everyone informed as the sale progresses.

Sellers can also prepare for some of the financial considerations involved by reading our guide to the costs when selling a house.

At Oakheart, we remain involved throughout the sales process rather than simply introducing a buyer and stepping away. We work closely with buyers, sellers and solicitors to help keep each move progressing towards exchange and completion.

If you're considering selling your home across Essex or Suffolk, you can find your local Oakheart branch and speak to our team about your next move.

What Is a Memorandum of Sale? A Guide for Buyers and Sellers