Should contracts b e recordable or not recordable? Why?
Howdy Bettysue:
I may consider recording a memorandum of contract if it was a lease purchase or option deal but not normal to record a sales agreement.
What type of contracts are you talking about and recorded where?
Can you clarify?
Just the standard contract for sale and purchase of real estate. I am in Fl. Our FAR/BAR states that that the contract is not recordable. (Recorded in any public records and the contract shall bind and inure to the benefit of the parties).
In talking to investors, some disagree and some agree. I just wanted to see what you all were doing and thought.
Contract for sale Must record for foreclosure purposes. Contract for lease NEVER.
IMO. You want a purchase contract so all parties know their responsibility. In most states, a Real Estate Purchase contract needs to be in writing to be legally enforceable.
An executed written contract is legally enforceable and does not need to be recorded or made public to be legally enforceable. It would serve no real purpose that I can see.
I also agree with Tedjr. A lease option is an agreement regarding the property that could benefit the optionee by being accessable in the in public records.
However if the lease option is breached by the optionor (seller), the optionee (lessee) has legal recourse even if th option isn’t recorded.
(did I say that right?)
So my opinion is NO I’ll go push the button now. Good question.
In Indiana if it is written on a napkin, as long as it is notarised it can be recorded.
I like to have everything notarised. It adds more authority to who ever I have sitting across the table.
Then I only record documents that need to be…
Success to all
Bruce