Memorandum of Sale before or after chain completes?

greensalad

FTB so please be gentle! I'm just a bit confused about what is probably a minor thing.

We had an offer on a house accepted on Friday. We were shown around by the vendor so had an opportunity to discuss with them both our positions. They said they were considering one property they'd seen and liked (not sure if viewed or just "seen"), and possibly a new build. I believe the fact we said we're FTB and willing to wait for a new build may have factored in our offer acceptance.

The EA told me that once I'd sent over XYZ documentation they'd issue the Memorandum of Sale to our solicitor, who we have appointed. I understand it's not a legally binding document but they made it sound like until the MoS had been sent out to our solicitors that the property wouldn't be taken off the market.

Monday morning the property has been taken off the market, listed as sold on all websites. I presumed this meant the MoS had been sent out. I asked for confirmation of this (someone told me a horror story where the EA sent an MoS to the wrong solicitor and they ended up getting billed for 2 different conveyancers). 

I've now been told by the EA:

"We are just waiting on the vendors solicitors they are currently out looking and have offered on a property we are just waiting for confirmation."

This has confused me, I didn't realise the vendors offering/accepted would be part of the MoS. I figured that we'd agreed to buy theirs, and they'd agreed to sell it to us, and that was all the MoS needed to state. I was half expecting it to take a few weeks/months for the chain to complete while the vendor looked for a property or decided on the new build. So I'm confused, does the MoS not get issued at this stage?

kingstreet

The MOS has details of the property, vendors, purchasers and both conveyancers. Until both parties confirm the latter, the MOS can't be issued.

greensalad

kingstreet said:

The MOS has details of the property, vendors, purchasers and both conveyancers. Until both parties confirm the latter, the MOS can't be issued.

Yeah that was my understanding, however I'm confused by the comment that the vendors are "out looking and have had an offer accepted" and what that has to do with the MoS. 

Perhaps this sentence:

"We are just waiting on the vendors solicitors they are currently out looking and have offered on a property we are just waiting for confirmation."

was actually meant to be:

"We are just waiting on the vendors solicitors" (this is why we haven't done the MoS yet)
"they are currently out looking and have offered on a property we are just waiting for confirmation." (this is just for your general information).

Sorry, just a complete noob to this so want to make sure I shouldn't be asking for something that I'm missing.

kingstreet

They don't have vendors' solicitors details and are therefore unable to issue an MOS. Surely, the pertinent question here is "does the vendor intend to provide solicitor details before they reach agreement on an onward purchase, or not?"

fishfingerbutties

I always thought it was the case too that MOS was done at the point of accepting offer, but actually it's not always the case. Some don't issue until a complete chain. Some people don't get solicitors sorted until chain is complete, given the advice not to start legal business until the chain is complete so you don't waste money on something that doesn't happen.

There's no right or wrong answer.