A memor&um of contract (MOU) a pre-contract to a real estate sales contract. It is less legally binding than a contract & it can be used to outline the terms & details of the agreement before the contract is drawn. It can be used in court when one party fails to meet one or more of the obligations stated in the agreement.
It basically puts the term of a contract that both parties can look at in one document. This way the terms of the sale can then be negotiated. It is a starting point, to start to agree. A memor&um of sale contract will include names & Contacts of the buyer & seller, the property address, tenure details & any special conditions. It will also include sales price deposit amount & it can include which lender may be used.