Memorandum Contract Legal Help

Secure agreements with proper public record documentation.

In this video:

What is an MOU?
How does an MOU protect a buyer & a seller?
When is an MOU invalid?

Memorandum of Sales Contract Legal Services

A memorandum of contract (MOC) is a pre-contract to a real estate sales contract. A MOC is less legally binding than a contract. It can be used to outline the terms and details of the agreement before the contract is drawn. A MOC can be used in court when one party fails to meet one or more of the obligations stated in the agreement. A memorandum of contract puts the terms of a contract in a way that both parties can look at it in one document. This way the terms of the sale can then be negotiated. It is a starting point that begins the agreement. A memorandum of sale contract will include the names and contact information of the buyer and seller. It will include the property address, tenure details and any special conditions. The sales price, deposit amount, and lender are also included. Price: $250 (Setup an appointment here).

Formalise Property Sale Agreements

Why is a Memorandum of Sales Contract Important?

This is important, because the real estate agent or the seller can take the home off the market. This memorandum gives the real estate agent, the seller, and the buyer a chance to review the conditions and determine the specifics for the final sales contract.

A memorandum of contract (MOC) can be used in court if one party fails to meet the obligations of the agreement. For example, if the MOC states that the earnest money will be deposited on a certain day, then the final sales contract is to be signed on this day. If it is not, then the obligation of the seller to remove the property from the market and decline other offers or continue to sell to another party is invalid.

What Can Be Negotiated After a Memorandum of Sales Contract

There are many things you need to determine before buying a property. Do you want to have an inspection period? Do you need to have clear title? This is important if you want to have the leaky roof fixed prior to purchasing it. The MOC helps you take the first steps in an interest to take the home off the market. This shows you are a serious buyer, and you need to work out the details of buying the home. It shows your intent to buy it.

Details like the price, down payment and move in date are critical. You can negotiate whether the seller leaves the fridge or you receive a clear termite notice from a local exterminator. It is important to have the time to determine the things you need to negotiate.

FAQ

Does a Memorandum of Sales Contract Hold Up in Court?

A memorandum of contract does obligate the seller to selling to you, if you have to go to court for the matter, we usually find it is easier to settle outside of court. This can happen from time to time. If the buyer truly does not want to sell to you, they can buy you out of the contract to avoid court. If you do go to court, you will cloud the title, and the home will not be able to be sold or given title insurance.

Who Does a Memorandum of Sales Contract Protect?

Why Would We Need a Memorandum of Sales Contract?

You should think about getting an MOC if the contract period is for an extended amount of time (Like 2 months for example, to close) There are many reasons you would need time to close, getting a survey, appraisal etc. But in order to protect you from wasting your time and money and being outbid during the closing period, it is important to get an MOC. If you are planning on closing in for example 1-2 weeks, it is less likely needed.

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Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call.

Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient.

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