They would then record the contract in order cloud the title, as a way to insure themselves a profit.

If the seller decides to back out you can have a memorandum of agreement drafted and recorded, effectively clouding the title.

The conveyance will be accepted and will be held by Trustee subject to all existing encumbrances, easements, restrictions or other clouds or claims against the title thereto, whether the same are of record or otherwise.

You must be on cloud nine right now.

I said nothing of the Vendor's desire to sell, nor am I trying to cloud the myth of the American dream. 

Typically a memorandum of contract is just an abbreviated document that confirms that you and seller have an agreement to purchase/sell a property, but it doesn't contain all the details/conditions that the full contract would.It basically just puts others on notice (assuming you record it) that you and the seller have an agreement to buy/sell the property....sort of "cloud the title" if you will (in case you're worried about the seller going around your back and selling to someone else).As to where you can get one, you can Google them and find them online. 

It is wise to have an Identity Statement sheet from your title company so as soon as you put the property under contract you can have your title company run the title and when you market the property you will confidently tell your buyers that the property is cloud free.

But here's a link to it on a Cloud server if this is allowedDeal Analysis - Rehab, Rental, Flip, Owner Fin.xlsxhttp://www.4shared.com/file/T95bb38B/Deal_Analysis_-_Rehab_Rental_F.html If not sorry, I'll upload it appropriately when I'm able to.Thanks,Jordan[url]

You now get to decide if and when you want to record the memorandum, effectively placing a cloud on the title.

With that said the new federal law seems clouded on the matter of the actual lease.