Memorandum of Sale

TamsinC

How usual is it to get a memorandum of sale that states exchange is to be within 28 of draft contracts? And how enforceable is that? To me, it seems a hopeful wish considering you never know what searches and surveys will throw up etc. And how soon do draft contracts come through, can they be delayed if you wish?

eddddy

Nothing written or discussed before exchange of contracts is binding on either party, including anything written in the memo of sale...

(Unless you enter into some type of 'pre-contract contract', which would be unusual. Unless this is for a new-build, where buyers often enter into a reservation agreement/contract.)

And even after exchange of contracts, only what is written in the contract is binding.

In this case, the buyer and seller are saying that they plan to exchange contracts within 28 days.

If one party 'drags their feet' and doesn't look like they will exchange in 28 days, the other party might decide to 'walk away'.

But either party can 'walk away' after 1 day, 14 days, 28 days, 56 days or any other number of days anyway (until contracts are exchanged).

(The above assumes you're in England/Wales)

TamsinC

eddddy wrote: »

Nothing written or discussed before exchange of contracts is binding on either party, including anything written in the memo of sale...

(Unless you enter into some type of 'pre-contract contract', which would be unusual. Unless this is for a new-build, where buyers often enter into a reservation agreement/contract.)

And even after exchange of contracts, only what is written in the contract is binding.

In this case, the buyer and seller are saying that they plan to exchange contracts within 28 days.

If one party 'drags their feet' and doesn't look like they will exchange in 28 days, the other party might decide to 'walk away'.

But either party can 'walk away' after 1 day, 14 days, 28 days, 56 days or any other number of days anyway (until contracts are exchanged).

(The above assumes you're in England/Wales)

Fabulous - thank you, it was what I thought but had confuddledated myself - yes Wales, not newbuild- I had not seen it before on a memorandum of sale and was a) slightly worried and b) also perplexed as you can't guarantee anything.

I'd love to mange 28 days from draft contracts to exchange but I won't not do searches or surveys in order to facilitate it. My vendor was also pushing for an exchange date for the end of June but with no completion date and before my survey date - so I said no. I think she was panicking a tad. Much as I would love to move in tomorrow it still needs to all be done properly.

EDIT: I WILL be doing searches and a survey (my double negative seems a tad confusing)

eddddy

TamsinC wrote: »

I'd love to mange 28 days from draft contracts to exchange but I won't not do searches or surveys in order to facilitate it.

So presumably you're not buying with a mortgage (because a mortgage lender would insist on searches).

It's very unusual to buy without searches - hopefully, you're not doing this at the request of the seller. (Because it might suggest that there's something the seller doesn't want you to find out.)

TamsinC

eddddy wrote: »

So presumably you're not buying with a mortgage (because a mortgage lender would insist on searches).

It's very unusual to buy without searches - hopefully, you're not doing this at the request of the seller. (Because it might suggest that there's something the seller doesn't want you to find out.)

re read - I won't NOT do searches - i.e. I WILL

Thrugelmir

TamsinC wrote: »

re read - I won't NOT do searches - i.e. I WILL

Then don't expect your vendor to be proactive until there's certainty that you intend proceeding.

TamsinC

Thrugelmir wrote: »

Then don't expect your vendor to be proactive until there's certainty that you intend proceeding.

I don't understand what you are meaning? Are you implying I should NOT have surveys and searches done? I have a survey booked, I have a mortgage application in, I have instructed solicitors, but I WON'T skimp on those just to met a theoretical 28 day deadline after draft contracts. I WILL do everything in my power to help facilitate a quicker process but I WON'T do that at the detriment of the 'process'.

I definitely intend proceeding, I'm not sure how much more I can do. I have no idea how proactive my vendor intends to be but they are the ones pushing this quickly. We are chain free, in forces quarters so have accommodation as long as we need, we will do what we can, as quickly as we can, but as properly as we can.

SG27

Did you tell your vendor that you intend to go ahead with your survey and thay you can not meet that timescale?

In some areas the searches alone can take longer than 28 days to come back!

SG27

Our sellers are the complete opposite, 5 weeks after our offer was accepted they still have found anywhere and are ignoring our solictors enquiries

TamsinC

SG27 wrote: »

Did you tell your vendor that you intend to go ahead with your survey and thay you can not meet that timescale?

In some areas the searches alone can take longer than 28 days to come back!

We are trying to rearrange the survey for a week earlier (still awaiting confirmation from the EA as to whether this is happening - as you know it's a specialist company and they are doing their best to accommodate the vendor but only have one earlier date to offer - it's that or the original date) - but also said we can't meet the end of June deadline - we suggest TRYING for the middle of July IF everything went well, but that we couldn't guarantee anything as it all depends on the searches/survey/solicitors etc. I 'think' she has calmed down now. The EA seemed very positive. We shall see. It's been a roller coaster ride indeed.

SG27 wrote: »

Our sellers are the complete opposite, 5 weeks after our offer was accepted they still have found anywhere and are ignoring our solictors enquiries

Arrgh, that sounds awful. They could at least answer stuff and let you know what is going on. Luckily our vendors have found somewhere they like and have 'said' they will go into rented if necessary (I'll believe it when I see it actually) - but we don't have any pressure to move so if they do actually end up not being ready it's not a problem for us (not until December 24th actually!)

SG27

That sounds promisimg at least! Good luck!!