A Memorandum of Understanding usually has the status of a contract, if it meets the requirement of being in writing. Therefore, a Memorandum of Understanding that includes the essential details of a transaction is usually a contract in every sense of the word. The fact that the parties call the document by the name Memorandum of Understanding, and even leave non-essential details for later completion while noting that their lawyers will compose the agreement for them, does not make a difference, and the Memorandum of Understanding is itself a binding contract.
A Memorandum of Understanding will not be considered a contract only if it is obvious that the parties did not yet intend, via the Memorandum of Understanding, to commit themselves to carry out a real estate transaction; for example, when a Memorandum of Understanding does not express the clear will of the parties to carry out a real estate transaction, but is only a general expression of intentions.