Download Idaho Full Release of Memorandum of Contract Legal Forms

In Idaho, standard practice involves recording a Release of Memorandum of Contract or a Satisfaction of Contract with the county recorder's office where the original memorandum was filed.

Preparation of Release Document:
Content: The release should reference the original memorandum, including details such as the recording date, document number, and parties involved.

Signatures: All original parties to the contract should sign the release, and their signatures need to be notarized to meet recording requirements.

Recording the Release:
Submission: Present the completed release document to the county recorder's office where the original memorandum was recorded.

Legal Descriptions and Indexing:
Ensure that the release document includes accurate legal descriptions of the property and references to the original memorandum to facilitate proper indexing and public notice.
Failing to release a Memorandum of Contract for real property after the underlying contract has been satisfied can lead to several legal and practical consequences:

1. Title Clouding
Impact: The memorandum remains on public record, creating a "cloud" on the title.
Result: This may prevent the property owner from selling, refinancing, or otherwise transacting with the property until the memorandum is released.

Legal Risk: Title companies might refuse to issue clear title insurance.
2. Potential Legal Liability
Civil Lawsuits: The property owner or other affected parties could file a lawsuit against the party responsible for failing to release the memorandum. Claims may include:
Breach of contract: If the underlying agreement requires prompt release upon satisfaction.

Slander of title: If the continued existence of the memorandum falsely implies an unresolved claim against the property.

Damages: The court may award compensation for financial losses resulting from the clouded title, such as lost sale opportunities or delays in transactions.