What is a memorandum of sale?
A memorandum of sale is a document issued after the auction that records the basic terms of the sale — including the buyer’s and seller’s details, the agreed purchase price, and any relevant special conditions.
In an auction context, it is typically signed immediately after the hammer falls and forms part of the legally binding contract.
Is it the same as the contract?
No — but it forms part of the contract in auction sales.
In a normal sale, the contract is negotiated and exchanged later. In an auction, the contract is exchanged at the fall of the hammer, and the memorandum of sale is the written record of that exchange.
It is usually accompanied or followed by the Special Conditions of Sale and the Common Auction Conditions, which together form the full contract.
What does it include?
- The property address.
- The buyer’s and seller’s names and solicitors.
- The auction sale price.
- Confirmation of the deposit paid (usually 10%).
- The completion date (often 14 or 28 days from auction).
- Any special conditions or additional fees noted in the auction pack.
Although it may look simple, signing the memorandum is not a formality — it is confirmation that a binding contract has been entered into.
It proves that a binding sale has taken place.It is used by both solicitors to progress the legal transfer of ownership. It is sometimes required by lenders, bridging companies, or insurance providers to confirm that a purchase is underway.
If you are buying at auction, you’ll need to sign the memorandum immediately and ensure that the buyer details (individual or company) are correct and final — as you cannot change them later without risk.
Summary
The memorandum of sale is the document that confirms and records your auction purchase. It is a legally significant part of the contract and should be signed carefully. At Versus Law, we use the memorandum to begin post-auction work immediately — ensuring you meet all contractual deadlines.










