Document background
The Memorandum of Contract of Sale is a fundamental document in Hong Kong property transactions, serving as the initial formal record of agreement between parties in a property sale. This document is typically used immediately after parties reach agreement on key terms but before the full formal Agreement for Sale and Purchase is executed. It captures essential elements required under Hong Kong law, including party details, property description, purchase price, payment terms, and completion arrangements. The document must comply with the Conveyancing and Property Ordinance and other relevant Hong Kong legislation, making it an important stepping stone in the property transfer process. It's particularly crucial as it can be used to enforce the transaction if either party attempts to back out, provided it contains all essential terms.
