What Is A Sales Memorandum And Why Is It Needed?
Posted on 11th June 2020
Upon commencement of your conveyancing transaction, the production of the sales memorandum is one of the first important steps in getting the ball rolling.
This document is provided by the estate agents, and gives useful information pertaining to the transaction, in order to assist the matter proceeding. It is provided to the parties involved, inclusive of the buyer and seller, and their respective solicitors.
This document is issued when both buyer and seller have instructed solicitors to act on their behalf. Once this has been confirmed, the memorandums can be forwarded and the matter can progress.
It is important to note that the sales memorandums cannot be issued until each party has instructed a property conveyancing solicitor to act for them. It is, therefore, important to ensure you have a conveyancer on board, to avoid any unnecessary delays. At MG Legal, we believe that it is important to instruct a solicitor that you can trust to handle your affairs, with ease. See our Preston solicitors blog, in which we highlight the importance of this, and why we should be your first port of call, here. So, if you need the advice of our property experts, contact us today at property@mglegal.co.uk, for a fixed-fee quote, with no hidden extras.
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What if we are dealing with a private sale?
Where we are dealing with a private sale, this information will need to be exchanged directly, between the seller and buyer. The parties can then pass the relevant details to their respective conveyancing solicitors, and the transaction will proceed in the same way.
What does the Sales Memorandum look like?
The memorandum includes various important pieces of information and, usually, comprises a one-page word document, as a one-stop-shop of information, for your conveyancing solicitor. The document will provide details for the following:
- Details of the parties to the conveyance, inclusive of the buyer, the seller and their acting solicitors, together with their addresses and contact details.
- Details of the property being dealt with, inclusive of the full address and tenure, i.e. freehold or leasehold.
- The agreed price at which the property is to be conveyed.
- Confirmation as to any specific requirements the parties may have in respect of Completion. This can include target dates for Exchange and Completion taking place, in order that all parties involved can be working towards the same date. It is, of course, difficult to agree dates upon commencement, as there are a number of factors which can alter the estimated time scales. It is important to see our blog, here, in which we specifically discuss property transaction time scales, for more information.
- Confirmation as to whether the prospective purchaser will be buying the property cash, or will be securing finance by other means, such as a mortgage.
- If there has been an agreement made in terms of any fixtures and fittings at the property, this can also be noted on the sales memorandum. This is to advise all parties, from the outset, of the intentions in this regard. For example, the buyer has agreed to purchase the fridge/freezer at an additional £200.00. This ensures transparency from the outset, and allows the seller’s solicitor to accurately draft the Contract for sale. Any such arrangement would, of course, be confirmed within the Fittings and Contents Form, which forms part of the Contract. For more on the Fittings and Contents Form, see our blog, here.
As you can see, the memorandum of sale can provide important information pertaining to the transaction should be provided at the earliest, in order that the legalities of the transaction can proceed without delay.
Does the Sales Memorandum include any other documentation?
The memorandum of sale is, usually, accompanied by the following:
- Initial Letter from the estate agents: An initial letter is usually provided, which notes a point of contact with the agents, and confirmation of the matter generally. This is in order that, should the respective solicitors need to contact the agents, they know whom they are to contact, their details and, where necessary, at what branch.
- Brochure: The memorandum can also be partnered with the sales brochure, setting out the particulars, pertaining to the property. The brochure shows the sale images, room plans, and gives a ‘guided tour’ style description of the property. This is not only important so that the property images are readily available, but allows your conveyancing solicitor to review the same, and pick up on any matters that may need dealing with. For example, the property advertises an open plan living and dining room, due to an interior wall being removed. Your conveyancing solicitor would, therefore, then be looking for evidence that the works had been carried out in accordance with Building Regulations, and that the same is structurally safe. As you can see, the sales brochure can give an important insight into the property, and assist your conveyancer in raising the pre-contract enquiries. See our blog, in which we discuss the various items that your property solicitors are considering when raising conveyancing enquiries, here.
- Energy Performance Certificate: Finally, the memorandum will be forwarded with an Energy Performance Certificate. The Certificate is required when selling a property, to show how efficient the property is. See our blog for more on the importance of Energy Performance Certificates, here.
The sales memorandum can, therefore, provide important information, to assist your conveyancing transaction.
If you are ready to commence a sale or purchase transaction, consult the expertise of MG Legal’s property solicitors today. Our five-star service is second to none, and our reviews mirror nothing less. See for yourself, here. Contact us today, by submitting your enquiry online, here, where our local solicitors will be on hand to assist.
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