Land records · Parcel maps · October 7, 2026
What Is a Memorandum of Option in Real Estate?
What is a memorandum of option? A short recorded notice that someone holds an option to buy a property, without revealing the full option terms.
What is a memorandum of option? A memorandum of option is a short document recorded in the county land records to give public notice that someone holds an option to purchase a property. The full option agreement, with its price and other business terms, usually stays private. The memorandum identifies the owner and the option holder, describes the property, and states that the option exists and how long it lasts. Recording it protects the option holder against later buyers or lenders who might otherwise claim they had no notice of the option. This page is general land-records background, not legal advice.
Why record a memorandum
An option to purchase is a contract right. If it is not recorded, a later buyer who pays value without knowing about the option may take the property free of it under the state’s recording act. By recording a memorandum, the option holder puts the world on notice. Anyone who later buys or lends against the property is treated as knowing about the option.
What it usually contains
| Item | Purpose |
|---|---|
| Names of owner and option holder | Identifies the parties for indexing |
| Legal description | Ties the notice to the parcel |
| Statement that an option exists | Gives notice without full terms |
| Option term or expiration date | Shows how long the right lasts |
| Reference to renewal rights | Notes any extensions |
| Signatures and notarization | Required for recording |
Price, payment schedule, and conditions are normally left out. A right of first refusal is often recorded the same way.
Memorandum of option vs right of first refusal
An option gives the holder the right to buy at agreed terms within a set time, whether or not the owner wants to sell. A right of first refusal only lets the holder match an offer if the owner decides to sell. Both can be recorded by memorandum. See what is a right of first refusal.
Common uses
Developers often use recorded options to tie up land while they seek zoning approvals. Tenants may hold options to buy in a lease, sometimes recorded through a memorandum of lease. Solar, wind, and cell tower companies frequently record options on land they may lease later. Family members sometimes hold options to buy out a relative’s share.
Effect on sellers and buyers
A recorded option shows up on title searches and commitments. Buyers and lenders will usually want it released, expired, or subordinated before closing. If the option has expired but the memorandum remains on record, it can act like a cloud on title until a release or termination is recorded.
Clearing an expired option
The best practice is for the option holder to sign and record a release or termination when the option ends unexercised. Some states have statutes that treat recorded options as expired after a stated period, but title companies may still ask for a release. If the holder cannot be found or refuses, a quiet title action may be needed.
Finding a memorandum of option
Search the county grantor-grantee index under the owner’s name. Memoranda may be indexed as “memorandum,” “option,” “agreement,” or “notice,” so try several document types.
Bottom line
A memorandum of option is a recorded notice that someone holds a right to buy a property, giving protection against later buyers and lenders without revealing private terms. Expired options should be released of record so they do not cloud title. Search the county index under the owner’s name to find one. Find county recorders via the Platbookmapper map.
What is a memorandum of option FAQ
Does a memorandum of option show the price?
Usually not; it gives notice without the business terms.
Why record an option?
To protect the holder against later buyers or lenders.
What happens when the option expires?
The holder should record a release so the title is clear.
Is an option the same as a right of first refusal?
No, an option lets the holder buy on set terms; a ROFR only lets them match an offer.
Who signs a memorandum of option?
Usually both the owner and the option holder, with notarization.