Memorandum of Understanding Format for Property

MEMORANDUM OF UNDERSTANDING: REAL ESTATE TRANSACTION

THIS MEMORANDUM OF UNDERSTANDING (the "MOU") is entered into this ______ day of ________, 20 (the "Effective Date"), by and between:

PARTIES

SELLER/TRANSFEROR: ________________________________________, with a principal address located at __________________________________________________________________ (hereinafter referred to as the "Seller").

BUYER/TRANSFEREE: ________________________________________, with a principal address located at __________________________________________________________________ (hereinafter referred to as the "Buyer").

(Collectively referred to as the "Parties").

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1. PROPERTY DESCRIPTION

The Parties hereby express their intent to enter into a formal agreement for the sale/transfer of the real property situated at: Address: __________________________________________________________________ Legal Description/Parcel ID: __________________________________________________ (hereinafter referred to as the "Property").

2. PURCHASE PRICE AND TERMS

The proposed purchase price for the Property is __________________________ ($____________). The payment structure shall be as follows:

• Earnest Money Deposit: __________________________ ($____________) to be deposited by the Buyer on or before ____________.
• Balance: The remaining balance shall be paid at the time of Closing via __________________________.

3. DUE DILIGENCE PERIOD

The Buyer shall have a period of ______ days from the Effective Date (the "Due Diligence Period") to conduct inspections, title searches, environmental assessments, and financial reviews. Should the Buyer, at their sole discretion, find the Property unsatisfactory, they may terminate this MOU upon written notice to the Seller prior to the expiration of the Due Diligence Period.

4. CLOSING DATE

The formal closing of the transaction is anticipated to occur on or before ________, 20, at a location mutually agreed upon by the Parties or at the office of __________________________.

5. NON-BINDING NATURE

Except for the provisions regarding Confidentiality, Exclusivity, and Governing Law, this MOU is intended solely as a summary of the principal terms under discussion and does not constitute a legally binding obligation on the Parties to complete the transaction. A binding commitment shall only arise upon the execution of a formal Purchase and Sale Agreement.

6. EXCLUSIVITY

During the term of this MOU, ending on ________, 20, the Seller agrees not to solicit, initiate, or engage in discussions with any other party regarding the sale of the Property.

7. CONFIDENTIALITY

The Parties agree to maintain the confidentiality of the terms set forth herein and any information exchanged during the negotiation process, disclosing such information only to their respective legal, tax, or financial advisors.

8. GOVERNING LAW

This MOU shall be governed by and construed in accordance with the laws of the jurisdiction of __________________________.

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IN WITNESS WHEREOF, the Parties have executed this Memorandum of Understanding as of the date first above written.

SELLER:

Signature: ____________________________________ Print Name: __________________________________ Title (if applicable): ___________________________

BUYER:

Signature: ____________________________________ Print Name: __________________________________ Title (if applicable): ___________________________

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WITNESS 1: __________________________ WITNESS 2: __________________________