Memorandum of Lease
Gridlync land and infrastructure glossary.
A memorandum of lease is a short document recorded in public land records to give notice that a lease exists, without disclosing the full commercial terms. It protects the tenant’s interest while keeping the lease itself private. It typically states the parties, the leased premises, and the term, but omits rent and other commercial details. Recording the memorandum puts third parties on notice so a later buyer or lender cannot claim ignorance of the lease.
Recorded memoranda are part of a complete land record. Gridlync keeps each agreement and its recording details organized for diligence.
Example
When DataNode Inc. signs a 40-year ground lease for a server farm on land owned by the Foster Trust, it records a memorandum of lease in the county registry naming the parties and the parcel, while the $1.1 million annual rent stays private.