Kent - FL 0 Report post Posted December 2, 2011 I was researching records with my county's Clerk of Court and only came across 1 recorded Memorandum of Lease. Didn't see any Affidavit of Equitable Interest or Performance Mortgages. Is everybody utilizing these on their deals? Are is it just the folks in my area not recording them? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 2, 2011 Generally, a Memo of Option is the more commonly used of the three docs you mentioned. It serves the same purpose as an Affadavit of Equitable Interest, and I think you'll find a Performance Mortgage quite difficult to utiize because the average homeowner is not going to understand it. So, you'll hear the ol' "I want my lawyer to look at this" line. Which means the deal is dead.Bottom line: go with the Memo of Option. It's easy to explain and understand, and serves its purpose just fine. Share this post Link to post Share on other sites
MichaelGibson 0 Report post Posted December 2, 2011 Bottom line: go with the Memo of Option. It's easy to explain and understand, and serves its purpose just fine.Michael: Why does the Memo of Option have to be explained to anyone since the Optionor doesn't have to sign it or even see it? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 2, 2011 A Memo of Option requires all signatures on it to be notarized, at least in every county I've ever done business in. So the homeowner needs to be able to read and understand it if you expect to have him sign it. Share this post Link to post Share on other sites
MichaelGibson 0 Report post Posted December 2, 2011 The Memo of Option I use basically states that I have an option to buy the property, with the legal description, my contact information, etc. At least, in Oklahoma, this is been enough to cloud the title. I sign it before a notary and file it with the County Clerk. I've never had a homeowner sign the Memo of Option. Do you think I'm making a mistake by not doing so? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 2, 2011 I'm not familiar with state law in OK, but I'm surprised they allow you to cloud title without the homeowner's consent. What's to stop anyone, then, from filing fraudulent documents on any property they choose? Share this post Link to post Share on other sites
MichaelGibson 0 Report post Posted December 2, 2011 I'm not familiar with state law in OK, but I'm surprised they allow you to cloud title without the homeowner's consent. What's to stop anyone, then, from filing fraudulent documents on any property they choose?Probably nothing, other than a possible criminal charge of fraud. It's not much different, however, than a supplier filing a materialman's lien (which does not require the homeowner's signature). You are simply putting the world on notice that you have an equitable interest in the property. BTW, I just checked with my attorney he he advised that a Memo of Option only needs to be signed by the optionee (and notarized, of course)....at least in Oklahoma. But as everyone knows, us Okies are a little different. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted December 2, 2011 My state requires every deal I do be recorded, CA, SLO. And the Memorandum is what I use. It has also work great in protecting my interest if a deal turns into a pure option and I need to collect from the closing. I always get a call from the closing attorney. I have all parties sign and notarize. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted December 2, 2011 Actually, I think in OK to cloud the title you just have to put a goat in the yard. That puts everyone on notice that you have a stake in the property. And when you get sued, the certified notice is signed by the stoner at the UPS store that serves as the registered agent...WHEE!!!Sorry Erik...I'm easily amused... Share this post Link to post Share on other sites
Kent - FL 0 Report post Posted December 3, 2011 Thanks for the clarificaiton... yes, I meant a Memo of Option, not a "Memo of Lease." I was still surprised that I saw only one registered in the past 6 months. If doing a CA, then it wouldn't be necessary to use, correct? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 3, 2011 Thanks for the clarificaiton... yes, I meant a Memo of Option, not a "Memo of Lease." I was still surprised that I saw only one registered in the past 6 months. If doing a CA, then it wouldn't be necessary to use, correct?Correct, Kent. If you're not going to remain in the deal, you don't have an interest to protect. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted December 4, 2011 Actually, I think in OK to cloud the title you just have to put a goat in the yard. That puts everyone on notice that you have a stake in the property. And when you get sued, the certified notice is signed by the stoner at the UPS store that serves as the registered agent...WHEE!!!Sorry Erik...I'm easily amused... I knew it was coming! Share this post Link to post Share on other sites