I am on another board and I read the blurb below today that sent me to the roof. However, I think that it’s of the utmost importance that people understand this business and what people will do for money, no matter how small an amount.
[b]There is a Florida Statute the states ‘the Clerk of the Court will not record a document that’ clouds a title unless the SELLER signs the document in the same manner as when conveying the property…signed, witnessed and notarized.
Some Florida Counties will not record an ‘agreement’ unless a seller signs in that manner. Other Florida Counties, like the one I’m in, will record ANY document, regardless of what it says, that is signed, two witnesses and notarized… even though the seller does not sign.
I recently opted to file a ‘quiet title’ suit to clear a title that my title company wouldn’t insure…rather than pay a $3K fee to a so-called investor who had filed a memorandum of agreement on the property.
Then my attorney told me the agreement was recorded in violation of Florida Statute… and found me an Attorney’s Title Company that insured the title, disregarding the recorded agreement. No quiet title action or quit claim required. That’s the loophole." [/b]
I am not trying to start anything here, I am sure that there are people here that will say the “so-called investor” should have known the statute and tough luck. However, the OP could have gone differently about it. He is well-known and successful, he didn’t need the money. He just did it because he could.
A memorandum is something you file on the title for the property showing that you have an option or interest in it. That way, an investor can’t go around you and try to buy the property (or the owner can’t sell it from under you). Well, they CAN, but with the memorandum on it the title will be clouded and most likely they can not get title insurance on it without you taking it off…and paying you.
If you do a search on here, there are many posts and threads on the subject. Best thing I ever read on REI.
I believe that you are referring to an Option Agreement. This post peeked my interest as because I am in Florida also, Im new to REI and I am considering using Options to get started. What county are you in? I am in Broward. I believe your post is stating that Options arent valid in much of Florida, is that true for Broward as well?
I am referring to the memorandum of the option (or agreement).
No, I am NOT saying that options aren’t valid in FL, what I AM saying is that you need to check your county/city/state laws before you record a memorandum, so that some jerk like the one I mentioned above doesn’t do the same to you.
I’m in CA, not FL. I think that in ANY state, you should CYA.
El CID, options and lease options are certainly legal and used in FL. And Broward County, like most counties, does require the sellers notarized signature on a Memo of Option.