In addition to having all the title transfer documents held in escrow during the option period, I think that given human nature and the greed factor, you would have to be brain-dead not to record a memorandum of real estate option. Recording a memorandum of real estate option agreement like the sample in Chapter 17 (page 183) against the title to the property under option provides constructive notice to the public that you have a valid real estate option to purchase the property. However, not all state statutes allow a memorandum of real estate option agreement to be recorded. In most states, in order to be recorded, a real estate option must establish a valid interest or right in the property being put under option. Check with the supervisor or manager of your county's public recorder's office to determine if a memorandum of real estate option agreement can be recorded in the official public records of your county.
Was this article helpful?