b) In lieu of the registration of the agreement, a memorandum executed by the parties to the agreement may contain at least the following information: the names of the contracting parties, a description of the property and a declaration that, under this chapter, an arbitration agreement has been concluded concerning that property. Such a memorandum, if recognized and registered or reinstated in the same way as a transfer of real estate, has the same effect as if the agreement itself had been registered or reseeded. It is possible to sell a property with a memorandum of understanding against them, but most people do not know that and the memorandum is usually enough to protect you. The first part indicates that two parties have entered into an agreement for the sale/purchase of a property. You must provide: before using a memorandum and Notice Of Agreement, you must find appropriate legal advice and fully understand how you use the communication. Incorrect use of a memorandum may lead to legal action against you for things that include, among other things, “compensation of ownership” or damages for interference with another contract/sale. For the Memorandum of Understanding to work, authenticated notarial, and recorded in the public records of the county where the property is located. If the MOU is not mentioned in the district files, it will be useless. In addition, there must be an agreement signed and separated from the agreement. Note that the agreement does not describe what the parties have agreed; their agreement is private and should not be included in public registers.
The Memorandum of Understanding contains only the important legal language that produces a “constructive reference” and makes the waiver of sharing rights more effective. To illustrate a disaster frequent enough to avoid the MOU, imagine a situation in which two people agree to share a property equally, but the owner pays 80% of the down payment.