Memorandum of Contract
What is a memorandum of contract in real estate?
A memorandum of contract (or “memo of contract”) is a simple document which identifies the parties of a contract for the purchase and sale of real estate, and gives key information about the contract’s details. Used correctly, the memo of contract can protect the rightful buyer from the seller improperly closing a sale to a third party.
Where should a memo of contract be filed?
Land records are kept by the county clerk in each county throughout Oklahoma, as they serve as the county’s official registrar of deeds. Some counties are large enough to have a specific “land records” department at the county clerk’s office. Some counties, such as Oklahoma County, allow online recording.
How does a memo of contract protect a buyer?
Each property in the county has a chain of title, or series of public documents tied to that parcel. When the buyer records a memo of contract and properly identifies the property, any title company handling a transaction of that given property will require that the seller (a) close the sale to the buyer identified in the memo, or (b) work with the buyer identified in the memo to formally terminate their contract, freeing up the seller to sell to a third party.
What if I am a seller that wants to terminate my real estate contract?
See our article on how to terminate a real estate contract in Oklahoma.
What are the key components of a memorandum of contract?
Any document which refers to another document should state:
- Date of the contract
- Parties to the contract
- Legal description and street address of the property
- Contact information for the party recording the notice
- Any other pertinent details
How long does it take to prepare and file a memorandum of contract?
Preparing and filing a memo of trust is quick, usually a few hours time, once the key information above is collected.
Get help from an Oklahoma real estate attorney.
Contact Avenue Legal Group to discuss your transaction and how to protect your interests.
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