Protecting Your Deals · The Cowboy Sales Process

Protecting your real estate deals is a non-negotiable part of wholesaling. While an initial contract is vital, a Memorandum of Agreement is your secret weapon. This isn't just another piece of paper; it's a publicly recorded document that locks down your position and prevents sellers from trying to back out or sell the property to someone else.

In short, it protects your deal from getting sniped.

This guide will break down the essential elements of a Memorandum of Agreement and show you exactly what you need to do to make it effective.

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1. Key Elements of a Memorandum

A Memorandum of Agreement is a straightforward document, but it must contain these critical components to be legally enforceable and effective:

Names of the Parties: Clearly state the full legal names of all parties involved—the seller (or sellers) and the buyer. In this case, you are the buyer, or the "assignee," of the contract.

Date of the Agreement: This is the date you and the seller signed the original purchase and sale agreement. This isn't the date the memorandum is filed; it's the date the contract was executed.

Property Description: This must be a specific and accurate legal description of the property. Don't just put the street address; use the full legal description found on the property deed. This leaves no room for ambiguity.

Signatures: The memorandum must be signed by the seller and you, the wholesaler. Your signature on the document is your legal assertion of your interest in the property.

Notarization: This is a crucial step. A notary public must witness the signatures and stamp the document. Notarization verifies the identities of the signers and confirms that they signed the document willingly. Without notarization, the document is just a piece of paper—it has no legal weight for public record.

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2. How to Get Your Memorandum Notarized and Filed

Once you have a complete, signed, and notarized Memorandum of Agreement, your next step is to file it with the county recorder's office. This act of public record is what legally protects your interest in the property.

Here are the most effective ways to get this done:

The Local Option: Banks and Credit Unions

Many local credit unions and banks offer free or low-cost notary services to their members. If you already have a relationship with a local financial institution, this can be an easy and efficient way to get your documents notarized without incurring extra costs.

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The Digital Option

For a fast, convenient, and reliable option, use an online notarization service like Notarize.com. You can upload your document, connect with a notary public via live video, and have your document notarized within minutes. The notary service then handles the rest, often including the electronic filing with the county. This is the most secure method, as it significantly reduces the chance of filing errors.

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Notarize.com⁠

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3. The Power of the Memorandum: Why It's Crucial

Filing a memorandum is essential for a few reasons:

Protects Your Interest: In the world of real estate, especially in wholesaling, speed is critical. If you have a property under contract and another buyer tries to make an offer, the filed memorandum will show up during the title search. This forces the new buyer and their title company to acknowledge your existing contract and either work with you or walk away. It prevents the seller from doing a "double close" behind your back with a different buyer for a higher price.

Enforces the Contract: By filing the memorandum, you're creating a public record of your contract. This puts pressure on the seller to honor the agreement. If the seller tries to back out, they'll have to go through a legal process to get the memorandum released, which can be costly and time-consuming.

Creates Leverage: The presence of a cloud on the title gives you leverage. A seller who wants to sell quickly will be motivated to work with you to satisfy the terms of your original agreement, as they can't sell the property until the memorandum is released.

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

The Cowboy Marketer⁠

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