Memorandum of Real Estate Purchase Option Agreement
(Commercial) (MA)

Summary

This template is a memorandum of real estate purchase option agreement that may be used by a purchaser who wishes to record its right to purchase commercial real property in Massachusetts pursuant to certain conditions set forth in a sales contract. This template contains practical guidance and drafting notes. An option contract is a unilateral contract which gives the option holder the right to purchase real property under the terms and conditions of the option agreement. Pursuant to Mass. Ann. Laws ch. 259, § 1, a contract for the sale of lands or of any interest in or concerning them and any agreement that is not to be performed within one year must be recorded. A memorandum of a contract granting a purchaser an option to purchase Massachusetts commercial real property may be recorded in lieu of the entire contract. See Mass. Ann. Laws ch. 259, § 1. This is often to avoid revealing the purchase price while putting third parties on notice of its right to purchase real property in Massachusetts. To be recordable, the memorandum must comply with the requirements of Mass. Ann. Laws ch. 183 § 1 et. seq., as further described below. This template is suggested for use for commercial real property in Massachusetts, however, local counsel should be engaged to ensure that all state-specific requirements are met and the agreement and ancillary documents comply with Massachusetts law in all respects. For further information about recording procedures in Massachusetts, see Recording Procedures (MA). For a full listing of key content covering purchasing and selling commercial real estate in Massachusetts, see Purchasing and Selling Commercial Real Estate Resource Kit (MA). For a full listing of key content covering purchasing and selling commercial real estate in general, see Purchasing and Selling Commercial Real Estate Resource Kit.