memorandum of sale and fund release

sam2015_2

Do solicitors need the memorandum of sale to request the funds to be released from the mortgage lender for completion?
The purchase price changed slightly half way through the process but haven't received the memorandum of sale from EA for this. The lender aware of the price change through MA and amend the mortgage offer already.

davidmcn

No, the memorandum of sale doesn't have any legal significance.

sam2015_2

Thanks for your reply.
What is the memorandum of sale is for?
My solicitor request an upto date one with the correct price before request the funds. My EA takes ages to issue one.

kingstreet

The memorandum of sale is issued at the outset.

It confirms the property address, agreed price, vendor, purchaser and both solicitors.

It is sent to everyone named, so there is no doubt over the parties involved.

You don't normally need to issue a new MOS for a price change during negotiations.

eddddy

sam2015 wrote: »

Thanks for your reply.
What is the memorandum of sale is for?
My solicitor request an upto date one with the correct price before request the funds. My EA takes ages to issue one.

Here's a typical example: http://www.househop.co.uk/docs/memorandumOfSale.pdf

It's normally used just to get things moving. It has no contractual significance.

Perhaps your EA uses their memorandum of sale differently. For example, I guess it could double as a claim for payment / invoice for their fee.

Anyway, just tell the EA that your solicitor needs the updated MoS before they will exchange. The EA's fee normally becomes due on exchange (and paid on completion), so the EA should do it fairly quickly.