Document background
The Memorandum of Understanding For Purchase Of Property is a crucial preliminary document used in Dutch property transactions to establish the framework for property acquisition negotiations. It is typically employed when parties have reached initial agreement on key terms but need to formalize their intentions before proceeding to a binding purchase agreement. Under Dutch law, while the MOU itself is generally non-binding, it serves several important functions: documenting the proposed transaction structure, setting out the due diligence process, establishing exclusivity periods, and defining confidentiality obligations. The document is particularly valuable in complex commercial property transactions but is also used in significant residential purchases. It must be drafted with consideration of Dutch Civil Code requirements, particularly Books 3, 5, and 7, and should anticipate the involvement of a civil law notary who will eventually execute the final transfer deed.
