Memorandum of Option
Gridlync land and infrastructure glossary.
A memorandum of option is a short recorded document that gives public notice an option agreement exists on a property, protecting the optionee’s interest without disclosing the full terms. Like a memorandum of lease, it names the parties and the property and states that an option exists, while keeping the option price and other terms confidential. Recording it warns any prospective buyer that the optionee has a prior claim on the land.
Recorded options are part of a complete land record. Gridlync keeps option agreements, their deadlines, and recording details together.
Example
Having optioned the Vargas tract for a future solar site, Aurora Renewables records a memorandum of option in the county records so a buyer cannot purchase the land out from under its two-year option, while the $1.2 million purchase price stays private.