Memorandum of Contract Example

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Template Memorandum Affidavit 01.16.25.docx.pdf

89.4 kB

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The Power of a Memorandum: Protecting Your Real Estate Deals

It is not the contract itself, but rather a summary of the key terms of the agreement. This document is a critical step for wholesalers and investors who need to ensure their deals are secure. By filing it with the county recorder's office, you are putting a public flag on the property, which can deter other buyers and provide legal recourse if the seller attempts to sell the property to someone else

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What a Memorandum of Contract Looks Like

The structure of a Memorandum of Contract is straightforward and designed for legal clarity. While the specific layout may vary by state or county, it generally includes the following key sections:

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Header Information

This section typically contains fields for administrative details required by the county clerk, such as cross-reference numbers, deed book and page numbers, and a note to the clerk.

Return Address

After the document is recorded, it needs to be returned to the correct party. This section specifies the business name, street address, city, state, and zip code for the return of the document.

Preparer Information

The document will state who prepared the affidavit, including their full name and address.

Affidavit Section

This is the core of the document, where the buyer officially files notice that they have entered into a contract to purchase a specific property from a named seller. This section also clearly states that the purpose of the memorandum is to put all third parties on notice of the buyer's established interest and intent to exercise their rights.

Date and Signatures

The document must be dated and include signature lines for the buyer and a witness.

Notary Section

This part is crucial for legal validity. A notary public must certify that the buyer personally appeared and signed the document. It includes the notary's signature, printed name, and the official seal.

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The Difference Between a Memorandum and an Affidavit of Interest

While both an Affidavit of Interest and a Memorandum of Contract serve to document a party's interest in a property, they do not hold the same legal weight.

The Memorandum of Contract is a more robust document designed to withstand legal challenges. In a dispute, the memorandum will typically hold more power in court because it directly references a contract and puts others on specific notice of that contractual agreement. The key difference is that a memorandum is a more formal, publicly recorded notice of a valid contract, providing stronger legal backing for your position.

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How to File a Memorandum of Contract

The process for filing a memorandum is straightforward but requires meticulous attention to detail.

Complete the Document: Fill in all the required information on the memorandum template. Double-check that all names, addresses, and property details are accurate.

Verify County Information: Be extremely mindful of the correct county for the property. A mistake here can lead to the memorandum being filed in the wrong location, rendering it ineffective. The speaker in the video recounts a personal experience where she had to refile a memorandum after discovering she had initially filed it in the incorrect county. Always verify the correct county by cross-referencing with another source.

Get it Notarized: The buyer must sign the document in the presence of a notary public, who will then add their signature, seal, and commission expiration date.

File with the County: Submit the completed and notarized document to the county recorder's office. The office will officially record the memorandum and often apply their seal for free.

From signing memorandums to closing, every deal starts with Prexium leads. Secure more deals now 👉

The Cowboy Marketer⁠

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