- MOU must be a comprehensive document outlining clear obligations of the buyer and seller.
- The document must be explicit and clear with regards to the fee payable to the real estate broker, government institutions, developer and lender respectively.
- It is suggested that MOU outlines a reasonable time frame to complete the transaction, especially when the seller has a mortgage and buyer is also completing the transaction through financing.
- MOU must protect the buyer in the event of valuation amount falling short of the agreed sale price or mortgage approvals not coming through due to any reason.
- MOU must ensure buyer is protected against any former legal disputes or claims made by the competent authorities or the developer which could halt the transaction.
- Particularly for rented properties, MOU should highlight clear and transparent actions with regards to the possession and the future tenancy terms.