Memorandum of Real Estate Purchase Option Agreement
(NY)

Summary

This template is for a memorandum of real estate purchase option agreement may be used by a purchaser who wishes to record its right to purchase real property in New York pursuant to certain conditions set forth in a sales contract. This template contains practical guidance, drafting notes, and optional clauses. This template is suggested for use in New York; however, local counsel should be engaged to ensure that all state-specific requirements are met, and that the agreement and ancillary documents comply with New York law in all respects. Pursuant to N.Y. Real Prop. Law § 294(2), a memorandum of the contract granting the 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 their right to purchase real property in New York. To be recordable, the memorandum must contain the names of the parties, the time fixed by the contract for conveying title, a description of the property, and if the purchaser is entitled to possession of the property under the terms of the contract, the memorandum must so state. For a template option contract in New York, see Option Agreement (Commercial Purchase) (NY). See 10 Warren's Weed New York Real Property Scope and 1 NY Practice Guide: Real Estate § 1.05 for information about purchase options in New York. For information on purchasing and selling commercial real estate in New York, see Purchasing and Selling Commercial Real Estate Resource Kit (NY). For further guidance about recording procedures in New York, see Recording Procedures (NY). See also County Recording Offices (NY). For a full listing of key content covering purchasing and selling commercial real estate, see Purchasing and Selling Commercial Real Estate Resource Kit. See also Junior Associate Real Estate Resource Kit (Commercial Purchase and Sale).