Memorandum of Contract for Sale of Real Property

[BeBe Cheng]

Hi Experts:

I came cross a recorded "Memorandum of Contractor for Sale of Real Property".  But the title never transferred.  Did this mean the buyer just assume the loan and took over the mortgage?

Also what is the "Corporation Grant Deed"?

California real estate attorney please help!!!

Thanks!

[Jamison Schweitzer]

Hi BeBe

I'm not an "expert" but I have recorded a memorandum of land sale contract before in Oregon (which sounds like the same thing you found).  It basically is a document that is recorded which informs the public that there is a contract in place to purchase the property. It clouds title which means that just like a lien or judgment, it must be satisfied upon transfer of property.  So, with the memo recorded, it is like the buyer inserted place holder saying no one else has the right to buy unless I cancel my contract to purchase. 

So, the person on title still owns the property, there is just a memo recorded that says that someone has a contract to purchase the property. 

For example I sold a property on contract where there was an agreement that the buyer would make a payment to live there each month, then after 2 years, the buyer is required to purchase the house.   However, if things don't work out, either party can ask to dissolve the agreement.   Sort of like a lease-option. 

No idea about a corporation grant deed....

Consult your lawyer

-Jamison