Which option best describes the purpose of the memorandum of exchange?

• A. It records the transfer of ownership at Land Registry
• B. It records the terms of the exchange and is used for future reference
• C. It certifies building insurance
• D. It confirms the completion date

Answer: (B)

The memorandum of exchange is the written record created when contracts are exchanged in a property transaction. It captures what has been agreed—the price, any deposit, conditions to be satisfied, and the completion date—and provides a clear reference for both parties and their solicitors as the deal progresses. Because exchange makes the contract binding, having this documented record helps prevent misunderstandings and guides any future steps or amendments. It isn’t the document that transfers ownership at the Land Registry, nor does it certify building insurance, and while the completion date is part of the contract, the main purpose is to fix and reference the agreed terms. So the best description is that it records the terms of the exchange and is used for future reference.