Document background
The MOU For Sale Of Property is a crucial preliminary document in New Zealand property transactions, particularly useful in complex or high-value deals where parties need to establish clear understanding before committing to a binding agreement. It serves as a roadmap for the transaction, documenting the parties' intentions, proposed terms, and conditions while maintaining flexibility for negotiations. This document type is commonly used when extensive due diligence is required, when dealing with commercial properties, or in situations involving overseas investors or corporate entities. While non-binding in nature, it demonstrates serious intent and helps prevent misunderstandings during the negotiation phase. The MOU must align with New Zealand property law requirements and often precedes the standard ADLS/REINZ Agreement for Sale and Purchase of Real Estate.
