Deal Sheet in NYC Real Estate: Not Binding, Still Critical
Back to the NYC Real Estate Blog
A deal sheet, also called a memorandum of agreement, packs 7 core fields into one page for both sides’ attorneys: price, closing date, contingencies, and contact information. It’s not legally binding on its own. Either side can walk before signing the actual contract, but an inaccurate deal sheet delays everything that follows.
We see this document treated as a formality by first-time buyers. That lasts right up until something in it turns out to be wrong, and the whole contract-drafting process stalls.
The jumping-off point for the seller’s attorney to draft the contract of sale.
What is a deal sheet, and why does every deal have one
Once an offer’s accepted, the listing agent puts together a deal sheet and sends it to the buyer’s agent to complete their side. Both attorneys then use it as the starting reference for drafting the actual purchase contract.
| Field | What goes here |
|---|---|
| Property address and MLS number | Identifies the deal |
| Sale price | The agreed number |
| Contingencies | Financing, inspection, board approval |
| Closing date | Target timeline |
| Buyer and seller contacts | Names, addresses |
| Attorney contacts | Names, firms, phone, email |
| Broker contacts | Names, license IDs, brokerage numbers |
As Stephen W. Allen, a partner at Romer Debbas, puts it, a deal sheet “is used as the jumping-off point for the seller’s attorney to draft the contract of sale and needs to be accurate as to these points to prevent delay.” Every field on it becomes an assumption the contract gets built on.
Is a deal sheet actually binding?
No. As Erin Sykes, Real Estate Advisor and Chief Economist for Nest Seekers, puts it plainly, “it is not a binding document.” The deal sheet just outlines proposed terms. The actual purchase contract, signed later, is what makes the deal enforceable.
That gap matters. Between the deal sheet and the signed contract, either party can still walk away. A seller with second thoughts or a better offer can back out with no legal consequences at that stage.
Who prepares it, and what’s actually on it
In NYC, the listing agent typically prepares and circulates the deal sheet first. They send a template to the buyer’s agent, who fills in their side and returns it. From there, it goes to
both attorneys, often alongside due diligence materials like the building’s offering plan and financial statements.
If you’re selling without a listing agent through an Agent Assisted FSBO, you’ll need to draft the deal sheet yourself once you accept an offer. Gathering due diligence documents in advance and hiring an attorney early make that process considerably smoother.
What happens if someone breaks the deal after the sheet’s signed
Nothing legally, since the deal sheet itself isn’t a contract. But real costs can already be sunk by that point. A buyer may have already paid for a title search or a home inspection out of pocket.
If the seller backs out before the purchase contract is signed, the buyer will likely be out the costs. There’s no recourse against the seller at that stage.
There’s a relationship cost too. Brokers on both sides expect a deal that reaches a deal sheet to actually close. Walking away after that point isn’t a breach of anything binding. It still tends to leave a mark on how an agent or attorney views working with you in the future.
Why accuracy on this document matters more than it looks
Small errors here don’t stay small. Allen’s advice: any term the buyer hasn’t actually agreed to needs to get flagged and corrected “before a contract is even sent out,” not after. Once a contract draft is built on a wrong number or an incomplete contingency, unwinding it costs everyone time.
Our pillar guide to due diligence covers what to verify at every stage between an accepted offer and closing. Once your contract’s signed, our NYC closing costs calculator and buyer rebate help you plan the rest.
Common questions
What is a memorandum of agreement in real estate? Another name for a deal sheet: a summary of an accepted offer’s terms, circulated to both sides’ attorneys before the actual purchase contract gets drafted.
Is a memorandum of agreement legally binding? No. It’s a summary of proposed terms, not an enforceable contract. Only the signed purchase contract that follows creates binding obligations.
What’s the difference between a memorandum of understanding and a memorandum of agreement? In real estate practice, the terms are used interchangeably with “deal sheet.” Outside real estate, an MOU often signals earlier-stage, less detailed cooperation than an MOA.
Who fills out a memorandum of agreement template? The listing agent starts it and sends it to the buyer’s agent to complete their portion. Both attorneys then use the finished version to draft the contract.
Can a seller back out after signing a deal sheet? Yes, since it’s not legally binding. They can back out at any time before the purchase contract is signed, though doing so may leave the buyer responsible for already-incurred costs.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
