Memorandum of Real Estate Purchase Option Agreement
(CA)

Summary

This memorandum of real estate purchase option agreement template may be used by a purchaser who wishes to record its right to purchase real property in California pursuant to certain conditions set forth in a sales contract. This template contains practical guidance, drafting notes, and optional clauses. Pursuant to Cal. Gov't Code § 27280, any instrument or judgment affecting the title to or possession of real property may be recorded in California. A memorandum of a contract granting a purchaser an option to purchase real property may be recorded in lieu of the entire contract, often to avoid revealing the purchase price while putting third parties on notice of its right to purchase real property in California. To be recordable, the memorandum must contain the names of the parties and be executed and acknowledged or proved as provided in Cal. Gov't Code § 27288 by the party who appears by the instrument to be the party whose real property is affected or alienated thereby, describe the real property, and describe the length of time the option will affect title to it. See Cal. Gov't Code § 27288 and 3 California Real Estate Law & Practice § 70.26. This template is suggested for use in California; however, local counsel should be engaged to ensure that all state-specific requirements are met and the agreement and ancillary documents comply with California law in all respects. For further information about recording procedures in California, see Recording Procedures (CA) and 3-82 California Real Estate Law & Practice § 82.35.