The memorandum of agreement is a deal-maker that features the key elements of the purchase contract. However, it is not legally binding, like the purchase contract. Because of this, it is common to see a memorandum of agreement broken by either party.
For example, maybe the seller gets cold feet about selling their house. Or perhaps they get a higher offer before signing the purchase contract by both parties involved.
Memos are often used in real estate markets to lay out the terms of a potential sale.
This is a way for both parties to ensure that they are on the same page about the deal and that any possible misunderstandings will be cleared before moving forward with other documents.