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A Memorandum of Sale records the key details when someone buys property in New Zealand. It captures the essential terms agreed between the buyer and seller, including the purchase price, deposit amount, settlement date, and any special conditions of the sale.

Real estate agents typically prepare this document right after both parties accept an offer, but before signing the formal Sale and Purchase Agreement. While not legally binding on its own, it serves as a crucial reference point for lawyers drafting the final contract and helps prevent misunderstandings about what was agreed during negotiations.

Use a Memorandum of Sale immediately after reaching verbal agreement on a property purchase in New Zealand. This document becomes especially important when dealing with complex sales, multiple interested parties, or when there might be a delay before the formal Sale and Purchase Agreement can be prepared.

Real estate agents rely on this memo to lock in the basic terms while lawyers draft the full contract. It's particularly valuable during fast-moving negotiations or when dealing with overseas buyers, as it creates a clear record of what everyone agreed to. This helps prevent disputes and keeps the sale process moving smoothly toward settlement.

• Basic Property Sale Memo: Records essential terms like price, deposit, and settlement date - commonly used for straightforward residential sales
• Commercial Property Memo: Includes additional terms for business assets, lease arrangements, or tenant obligations
• Conditional Sale Memo: Details specific conditions like finance approval, building reports, or due diligence requirements
• Multi-Unit Development Memo: Addresses specific requirements for apartment or unit title purchases, including body corporate details
• Rural Property Memo: Covers special considerations like water rights, stock inclusion, or land use restrictions

• Real Estate Agents: Usually prepare the initial memo after securing verbal agreement between parties
• Property Sellers: Review and confirm the sale terms align with their acceptance of the offer
• Property Buyers: Check that all negotiated terms are accurately captured before proceeding
• Conveyancing Lawyers: Use the memo as reference when drafting the formal Sale and Purchase Agreement
• Real Estate Agency Administrators: Process and file the memo as part of the official sales record
• Bank Representatives: Reference the memo when processing loan applications or releasing funds

• Property Details: Collect complete address, title references, and land area information
• Party Information: Gather full legal names and contact details for all buyers and sellers
• Price Terms: Document the agreed purchase price, deposit amount, and payment schedule
• Key Dates: Note settlement date, deposit due date, and any condition deadlines
• Special Conditions: List any agreed conditions like finance approval or building inspection requirements
• Chattels: Detail all fixtures and fittings included or excluded from the sale
• Verification: Have all parties review the memo before proceeding with the formal agreement

• Property Identification: Full legal description and physical address of the property
• Party Details: Complete legal names and addresses of all buyers and sellers
• Purchase Terms: Agreed price, deposit amount, and payment structure
• Timeline Specifications: Settlement date and key condition deadlines
• Conditional Clauses: Any specific conditions affecting the sale completion
• Chattel List: Detailed inventory of included and excluded items
• GST Status: Clear statement about GST application to the transaction
• Tenancy Details: Any existing tenancy arrangements or vacant possession terms
• Signature Block: Space for dated signatures of all parties involved

A Memorandum of Sale differs significantly from a Sale and Purchase Agreement in several key ways, though they're often confused in New Zealand property transactions.

• Legal Status: A Memorandum of Sale is an informal record of agreed terms, while a Sale and Purchase Agreement is a legally binding contract
• Timing: The memo comes first, documenting initial agreement terms before lawyers draft the formal contract
• Detail Level: Memos contain basic sale terms and conditions, while Sale and Purchase Agreements include comprehensive legal provisions and protections
• Purpose: Memos serve as reference documents during the transition to formal agreement, while Sale and Purchase Agreements legally bind parties to complete the transaction
• Flexibility: Memos can be easily modified, while changes to Sale and Purchase Agreements require formal variations and legal review