Affadavit & Memorandum of Option 2 Party Agreement

How Option Agreement protects buyer?

The affidavit is a voluntary declaration made by a person under oath administered by an authorized person under the law. It is a declaration of fact given in writing voluntarily, which is not cross-examined. It is based on the belief that what the affiant says is true either due to personal knowledge of the affiant or stated information.If an option was not signed before a notary, you can sign an affidavit called memorandum of Option and file it in the location of the property. It does not provide lien over property but only a cloud on the title of the property. A cloud on the title enables the person with the option to execute the option before the prescribed date agreed in the Memorandum.

Memorandum of Option is an understanding entered between the parties under which an Option is given as Contract right and not as an interest in the property. An Option can be beneficial to both the parties. It is normally carried out for Real Estate deals where memorandum of Option is executed where the property is located.The Option is given to the potential buyer, called as Optionee, who pays a fixed amount for the purchase of Option. Terms of Option agreement may vary, but it should describe the subject property and purchase price clearly.

The Potential buyer may be given time under the option, and he may choose to let the option lapse as he is not obliged to purchase the property. Memorandum of Option doesn’t provide any interest but provides protection to the potential buyer by way of providing a cloud on the title.

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Sample Template Preview

Attention: Clerk of the Court, cross-reference to Deed Book ______, Page ______.

After Recording Return To:
__________________________
__________________________
__________________________

AFFIDAVIT  AND  MEMORANDUM  OF  OPTION
FOR  PURCHASE  AND  SALE  OF  REAL  ESTATE

STATE  OF
COUNTY  OF
BEFORE ME, the undersigned authority, on this day personally appeared __________________________________________, who being first duly sworn, deposes and says that:
1.    An Option for the Purchase and Sale of the real property as described below, was entered into by and between the Affiant, as Optionee, and ___________________________________________________, as Optionor, on the ________ day of ___________________________, 20___.
2.    The closing of the purchase and sale of said real property, is to take place pursuant to the terms of the Agreement(s) entered into of even date herewith.
3.    THE OPTION PROHIBITS ADDITIONAL INDEBTEDNESS.   
4.    Any interested party may contact: _________________________________________________________, whose mailing address is ______________________________________________________________________________, and whose telephone number is ___________________.
FURTHER AFFIANT(S) SAYETH NOT.
Signed, sealed and delivered in the presence of:
________________________________________(Seal)    __________________________________________________(Seal)
WITNESS                        AFFIANT: __________________________
Sworn to and described before me this ______ day of _______________, 20____.
________________________________________
NOTARY PUBLIC
(Seal)
DESCRIPTION OF REAL PROPERTY
All that tract of land lying and being in Land Lot ________________ of the ______________ District, ___________________ Section of _______________________________________________________________ County, _________________________, and being commonly known as Address: ______________________________ City: _________________________, State: _____  Zip: ____________ according to the present system of numbering in and around this area, and being more particularly described as Lot _______, Block _________, Unit ________, Phase/Section ______ of ___________________________________________ Subdivision, as recorded in Plat Book ______, Page _______, ______________________ County, _________________ records together with all light fixtures, electrical, mechanical, plumbing, air-conditioning, and any other systems or fixtures as are attached thereto; all plants, trees, and shrubbery now a part thereof, together with all the improvements thereon; and all appurtenances thereto, all being hereinafter collectively referred to as the “Property.”  The full legal description of Property is as follows:

(Insert Legal Description)