Posted by Bill K. (AZ) on March 31, 1999 at 09:51:30:
You would record an “Affidavit and Memorandum of Agreement Concerning Real Estate”. It sounds complicated, but it’s nothing more than a half page form that specifies that you and the seller have come to an agreement on the purchase of said property. It includes the approximate date at which closing is to occur (it could be years in the future), and a statement indicating that a copy of the purchase agreement can be obtained by contacting you, the buyer. Sign the form in front of a notary (to be able to record it) and attach the legal description.
You don’t want to record the L/O itself because someone might try to offer the seller a better deal. Of course, recording this document lets the world know that you have an interest.
You’ll find all of the forms you need for this in Bill Bronchick’s “Lease/Option Workshop” course. It’s fantastic. In addition, I recommend his “Nuts and Bolts of Creative Real Estate Transactions” which contains EVERY real estate form you’ll ever need.
I hope this helps.
Bill K. (AZ)