Download Idaho Memorandum of Contract Legal Forms

In Idaho, filing a Memorandum of Contract instead of a full Contract for Deed is often done to protect sensitive details of the contract while still providing notice of its existence. Here’s when you might file a Memorandum of Contract rather than the full contract:
Reasons to File a Memorandum of Contract:
1. Privacy Concerns: The full Contract for Deed may contain sensitive financial terms, personal information, or other proprietary details. A memorandum ensures confidentiality while still notifying the public of the agreement.
2. Public Notice: A Memorandum of Contract serves as constructive notice to third parties, such as potential buyers or creditors, that an agreement exists involving the property.
3. Simplified Recording: Memorandums are typically shorter and less detailed than the full contract, reducing recording fees and streamlining the filing process.
4. Avoiding Confusion: Filing the full Contract for Deed might create unintended legal implications or confusion, especially if specific terms are subject to further negotiation or amendment.

Situations to Consider Filing a Memorandum of Contract:
• Statute of Frauds (Idaho Code § 9-505): This statute mandates that certain agreements, including those for the sale of real property or interests therein, must be in writing to be enforceable. It specifies that such agreements are invalid unless there is a written note or memorandum signed by the party to be charged.
• When Selling on Terms: If you're using a Contract for Deed to sell real estate with financing, the Memorandum can signal the agreement without revealing terms like purchase price, interest rates, or payment schedules.
• Protecting Negotiations: If the details of the Contract for Deed are sensitive to competitive or personal concerns, a memorandum can suffice.
• Compliance with Legal Requirements: To comply with recording statutes in Idaho, ensuring that future purchasers or lenders are aware of the contract’s impact on title.

What Should a Memorandum of Contract Include?
A Memorandum of Contract should include:
• Names of the parties involved.
• Description of the property (legal description).
• Date of the agreement.
• Statement indicating the existence of a binding contract.
• Any additional terms as required by local statutes or personal preference (but usually limited).

Filing the Full Contract for Deed: In some cases, the full Contract for Deed might need to be recorded, such as:
• To fully protect the buyer's interest in the property.
• When parties want all terms of the agreement to be part of the public record.
• When required by financing entities or other legal circumstances.