recording a lease option - Posted by gary

Posted by John B. Corey Jr. on September 10, 2005 at 22:00:34:

Depending on what is allowed in the specific state you can record a notice of interest (sometimes called something else). This does not state what your interest is in the property, just that you have an interest.

Only record something against a title when you have a true legal interest and right to record. Otherwise you can be sued for damages.

BTW - You sometimes do not want to record the actual option because you do not want to advertise what you are paying. If you later sell it helps your position if the buyer can not tell what you paid until after they have completed on the purchase. Otherwise they might wait out your option and buy from the original seller.

John Corey
Chelsea Private Equity LLC

recording a lease option - Posted by gary

Posted by gary on September 10, 2005 at 10:56:46:

I entered into a lease option as a buyer for a self-storage facility. After 2 months when I did not recieve a recorded copy from the seller I called him and asked for it. He told me that he does lease options all the time and does not record them. I told him that this was incorrect and I had the right to have a recorded copy. What is my next move? Should I have my lawyer write a letter or is there any article I should send this guy.

There are a couple of other things this guy did not fill me in on such as problems with neighboring businesses and a few other things. What is the best way to deal with this guy?

thanks
Gary

Re: recording a lease option - Posted by j

Posted by j on September 11, 2005 at 09:13:52:

Record a "Affidavit and Memorandum of Interest in Real Property"
This will ‘cloud’ the title and give you a CYA.

Re: recording a lease option - Posted by gerald(tx)

Posted by gerald(tx) on September 10, 2005 at 14:08:59:

Gary,

As a matter of practice, most lease options are not recorded. If you wished yours recorded, you should have asked for an additional original signature and told your lessor you wanted to record it. Then do it yourself.

But the question is, WHY do you want your lease option recorded? It’s certainly not necessary. Of course, it’s your right to have anything on record at the courthouse. Just don’t know why – most people want their names OFF of everything not required on
public records.

Gerald

Re: recording a lease option - Posted by Phil

Posted by Phil on September 10, 2005 at 13:30:43:

Your next move should be talking to your Attorney

Re: recording a lease option - Posted by gary

Posted by gary on September 10, 2005 at 14:55:52:

The option is an LLC. I also have the opportunity to lease a portion of the land to a large area company who will use their law firm and the law firm will dot their I’s and cross their t’s.(they might be hesitant to enter into the agreement with me if I don’t have myself protected.) They also will not do business with the current owner, they cannot stand him. (they prefer me.) I also have an opportunity to flip the option.

Re: recording a lease option - Posted by gerald(tx)

Posted by gerald(tx) on September 10, 2005 at 16:20:09:

Okay, I can understand where this could be one of those instances where recording might be desired. Just remember for future reference, recording is the responsibility of the buyer, not the seller – so plan ahead next time.

One factor, however – was the L/O notarized? Is notarization required for recording in your state? Some states also allow for “certified true copies” by the notary. Check with your county clerk.

Gerald