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Memorandum of Sale
I need a Memorandum of Sale for a residential property transaction in Qatar, detailing the agreed purchase price, payment terms, and any conditions precedent to the sale, with a completion date set within 60 days of signing. The document should also outline the responsibilities of both buyer and seller, including any penalties for breach of contract.
What is a Memorandum of Sale?
A Memorandum of Sale captures the key details of a property transaction in Qatar, acting as proof that a buyer and seller have agreed to transfer ownership. It records essential information like the property details, agreed price, payment terms, and the identities of all parties involved in the sale.
Under Qatari real estate law, this document serves as a crucial stepping stone before the final transfer deed (or sale contract) is registered with the Ministry of Justice. While not the final contract itself, it creates a binding commitment between parties and helps prevent disputes by clearly documenting the agreed terms and conditions of the sale.
When should you use a Memorandum of Sale?
Use a Memorandum of Sale when you've reached initial agreement on a property deal in Qatar but aren't quite ready for the final contract. This document helps lock in the basic terms while you complete due diligence, arrange financing, or wait for regulatory approvals. It's especially valuable in complex transactions involving multiple parties or when dealing with overseas buyers.
The timing is crucial - create this memorandum right after verbal agreement but before making any deposits or payments. This protects both parties by clearly documenting the agreed price, payment schedule, and key conditions. It also smooths the path to final registration with Qatar's Ministry of Justice by establishing a clear record of the deal's terms.
What are the different types of Memorandum of Sale?
- Basic Property Sale Memorandum: Documents standard residential transactions, including payment terms and basic property details
- Commercial Real Estate Memorandum: Covers additional terms for business properties, including tenant rights and commercial usage restrictions
- Off-Plan Property Memorandum: Specifically designed for properties under construction, with staged payments and completion conditions
- Investment Property Memorandum: Includes special provisions for income-generating properties, addressing rental agreements and management terms
- Pearl-Qatar/Lusail Memorandum: Contains specific clauses for freehold zones, incorporating unique requirements for foreign ownership in these areas
Who should typically use a Memorandum of Sale?
- Property Sellers: Initiate the Memorandum of Sale and outline their terms, including Qatari citizens, property developers, and corporate entities with real estate holdings
- Buyers: Review and negotiate terms, often including local residents, foreign investors in permitted zones, or commercial enterprises
- Real Estate Brokers: Facilitate the creation and exchange of the memorandum, ensuring all parties understand its terms
- Legal Representatives: Draft and review the document to ensure compliance with Qatari property laws
- Ministry of Justice Officials: Review the memorandum as part of the final property registration process
How do you write a Memorandum of Sale?
- Property Details: Gather complete property information including location, size, plot number, and any existing encumbrances
- Party Information: Collect official identification documents and contact details for all buyers, sellers, and their representatives
- Financial Terms: Document the agreed purchase price, payment schedule, and any deposit requirements
- Special Conditions: Note any specific requirements like property inspection results or financing contingencies
- Legal Compliance: Verify property ownership status and ensure compliance with Qatar's foreign ownership restrictions
- Document Format: Use our platform to generate a legally-sound memorandum that includes all required elements under Qatari law
What should be included in a Memorandum of Sale?
- Party Details: Full legal names, Qatar ID numbers, and contact information for all buyers and sellers
- Property Description: Complete address, plot number, size, and registration details as per Qatar Land Registry
- Transaction Terms: Purchase price, payment method, and schedule in Qatari Riyal
- Completion Timeline: Clear dates for deposit, final payment, and property handover
- Property Condition: Current state, included fixtures, and any known defects
- Legal Declarations: Statements confirming property ownership and absence of disputes
- Signature Block: Space for all parties' signatures, with witness provisions as required by Qatari law
What's the difference between a Memorandum of Sale and a Sale and Purchase Agreement?
A Memorandum of Sale differs significantly from a Sale and Purchase Agreement in Qatar's property market. While both documents relate to property transactions, their timing, legal weight, and level of detail vary considerably.
- Legal Status: A Memorandum of Sale serves as preliminary evidence of intent, while a Sale and Purchase Agreement is the final, legally binding contract
- Timing: The Memorandum comes first, documenting initial agreement on basic terms, whereas the Sale and Purchase Agreement follows after due diligence
- Detail Level: Memorandums contain essential terms like price and property details, while Sale and Purchase Agreements include comprehensive terms, warranties, and conditions
- Registration Requirements: Memorandums don't require official registration, but Sale and Purchase Agreements must be registered with Qatar's Ministry of Justice
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