When selling your property, the Memorandum of Sale (MOS) is a key document you’ll come across. But what does it really mean for your sale, and what happens after you receive it?
This guide will take you through what happens after you receive the memorandum of sale, what to do if it’s delayed, and why it’s an important part of the selling process.
Related: House selling timeline: what to expect
What is a memorandum of sale?
The memorandum of sale is a document that confirms the agreement between you, the seller, and the buyer of your property. It’s typically issued by the estate agent once the buyer’s offer has been accepted and outlines the agreed sale price and basic details of both parties. This includes the names of the buyer and seller, the property address, and the contact details of the agents involved.
Although it marks the start of the legal process, it’s important to note that a memorandum of sale is not a legally binding document. Rather, it’s a record that both parties are serious about going ahead with the sale, but there are still several steps to go before completion.
Related: How do you sell a leasehold property?
What happens after you receive the memorandum of sale?
Once you’ve received the memorandum of sale, the next steps in the process begin. Here’s what you can expect.
Instruct your solicitor or conveyancer
The first thing to do after receiving the MOS is to instruct your solicitor or conveyancer to start the legal side of the process. They’ll handle the important paperwork and carry out necessary checks on the property. From reviewing contracts to managing legal documents, your solicitor will guide you through the next steps and ensure everything runs smoothly.
Related: Should I use multiple agency agreements?
Property searches and surveys
Your solicitor will also begin property searches to check for any potential issues related to the property. These searches will investigate things like local authority planning permissions, environmental concerns, and any legal matters that may affect the sale.
In some cases, the buyer may arrange for their own surveys to assess the condition of the property. This is a key part of the process because any issues found in the survey could affect the price or cause the buyer to pull out. That’s why it’s important to ensure your property is in good condition before it hits the market.
Contract drafting and signing
Once the surveys and searches are complete and all parties are satisfied, the solicitor will start drafting the sale contract. Both you and the buyer will review and sign the contract once all details are agreed upon. Once this is done, the contract is exchanged, and the process moves closer to completion.
Completion
Completion is when the sale is finalised, and the ownership of the property officially transfers to the buyer. The buyer’s solicitor will arrange for the transfer of funds, and once everything is in place, you’ll hand over the keys. The sale will be officially complete at this point.
How long after the memorandum of sale to completion?
The timeline from receiving the memorandum of sale to completion can vary. It usually takes a few weeks, but the exact duration depends on several factors. The process can take anywhere from a couple of weeks to a few months, depending on how quickly both parties’ solicitors can complete the necessary legal work.
Several elements can impact the timeline, including how quickly the buyer’s solicitor can conduct searches, whether there are any issues with the property that need resolving, or if there is a chain of transactions (i.e., other parties involved in the sale or purchase). Having an efficient solicitor who keeps things moving along can help to speed things up.
Related: Guide price: What does it mean and how it affects your sale
What to do if your estate agent isn’t sending the memorandum of sale
If you’ve accepted an offer and you’ve been waiting for the memorandum of sale but haven’t received it, it’s important to follow up. Here’s how you can deal with the situation.
Contact your estate agent directly
The first step is to reach out to your estate agent. It’s possible there’s been a small delay, or perhaps they’re waiting for confirmation from the buyer. Either way, your estate agent should be able to give you an update on when you can expect the document to be issued.
Request clear communication
If the delay continues, ask for clear communication from your estate agent about why the memorandum of sale hasn’t been sent. Estate agents are there to facilitate the process, and you have every right to know what’s going on. Keep track of all correspondence, as it’s always good to have a paper trail.
Seek legal advice if needed
If your estate agent is unresponsive or the delay is causing frustration, it may be time to involve your solicitor. Your solicitor can chase up the estate agent on your behalf or even step in to handle the situation if necessary.
Is a memorandum of sale legally binding?
A memorandum of sale is not legally binding. It simply signifies that the buyer and seller have agreed on the terms of the sale, but it doesn’t make the sale official. The contract that’s signed later in the process is the legally binding document.
Even though the memorandum of sale itself isn’t legally binding, it does serve an important purpose. It’s a record that confirms both parties are serious about the transaction, allowing the legal work to begin and pushing the sale process forward.
Related: The importance of a precise valuation
Conclusion
The memorandum of sale is a key document in the property sale process, marking the point at which the sale is officially underway. After receiving it, you’ll need to instruct your solicitor, carry out property checks, and start working through the legal steps. While the process may take a little time, it’s important to stay patient and keep communication open with your estate agent and solicitor.
If your estate agent is delayed in sending the memorandum of sale, don’t hesitate to follow up. With clear communication and the right support, you can ensure the process continues smoothly towards completion.
We’re here to ensure everything moves forward effortlessly. For tailored advice and support throughout your sale, get in touch with your local Ellis & Co branch today.
