Posted by jeff on July 07, 2002 at 18:31:28:
#1. your option is recordable just like most any other type of real estate agreement. you can either record the option or a memorandum, that is your decision. both serve the same purpose. there are reasons to do a memorandum instead of the actual agreement for paper size, number of pages, or other obstacle that is not a standard setup. but either will do just fine for recording.
#2. the memorandum is a seperate document, you are correct.
#3. anytmie anyone signs their name to a legal document that you intend on recording it MUST be notarized during the signing of all parties included in the document. this can be done at the same time or seperately as the case may be, but the notar must actually be present during the signing of the name that they are to be notarizing. all documents that are to be recorded have to be notarized. they are still legal without notarization, just not recordable, in my area anyway.
#4. in most cases the realtor has an exclusive listing agreement and can battle you against your option rights. if he finds his buyer and you have not actually exercised your option then the realtor is gonna hit a clouded title once they try to close the deal with their buyer. your RECORDED option is a cloud on the title and must be cleared up before the sale can happen. all they have to do is wait out yuor time frame or the realtor can claim his exclusive listing and battle you over your option legalities. yuo will probably lose this battle if you havent exercised your option yet and are just waitnig out your term. your option is just that, an OPTION. it is up to you to exercise it or not. noce the realtor gets his buye rlined up you need to decide if you intend on exercising your option and purchase the property or not. yuor option is prevalent to the realtor’s buyers since you have the right to buy the property already recorded. but my guess is, and this is just a guess since i dont do options usually, the realtor will object to you holding them back from making a sale on a property they have an exclusive listing on. ive never dealt with this situation, but id imagine at this point youd better exercise or release the option or the realtor will make your life hard from this point on.
again, i do not do options as my normal course of business but this is my best interpretation of the goings on with this setup.