(A memorandum of the contract shall be titled "Memorandum of an Installment Sales Contract" )(765 ILCS 67/20)

Releasing a Memorandum of Installment Payment Contract in Illinois is important for several reasons, primarily related to clearing the title and confirming that the contractual obligations have been fulfilled. Here's why you might need to release a memorandum:

1. Clear the Property's Title
A Memorandum of Installment Payment Contract is typically filed to provide public notice that a contract exists between a buyer and a seller for the purchase of real estate under an installment payment agreement. This filing creates a cloud on the title, which means that anyone looking at the property records will see that there is an outstanding contract involving the property.
When the buyer finishes making all payments under the installment contract or the contract is otherwise terminated, a release must be filed to remove the cloud from the title. Without the release, it can create complications for future sales, refinances, or transfers of the property.

2. Confirm the Satisfaction or Termination of the Contract The release acts as a formal acknowledgment that the buyer has either:
Fulfilled their payment obligations and now owns the property outright, or
The contract has been canceled or terminated for other reasons (such as the buyer defaulting or both parties mutually agreeing to terminate).
Recording the release ensures that there is no misunderstanding or dispute regarding the status of the contract.

3. Enable the Buyer to Obtain Full Ownership
Under an installment payment contract, the seller retains the legal title to the property until the contract is fully paid off. Once the buyer completes their payments, they are entitled to full legal ownership.
Filing a release of the memorandum makes it clear in the public record that the installment contract has been completed, and the buyer can take full legal title to the property without any remaining encumbrances from the contract.

4. Facilitate Future Transactions
If the memorandum is not released, future buyers, lenders, or title companies will see the memorandum on the property’s title. This may make it difficult or impossible for the buyer to sell or refinance the property because it looks like there is still an outstanding installment contract.
A release ensures that the property is free from claims under the installment contract, making it easier for the buyer to proceed with any future real estate transactions.

5. Protect Both Parties
For the seller, recording the release ensures they have formally concluded their legal obligations under the contract.
For the buyer, it ensures that they have clear title to the property and there are no ongoing claims or obligations under the installment contract.

Legal and Procedural Considerations:
Once the contract is fulfilled or terminated, both the buyer and seller should sign a Release of Memorandum of Installment Contract and file it with the county recorder’s office where the original memorandum was recorded. This officially clears the property’s title.

In Illinois, failing to release a memorandum after the contract has been satisfied can cause legal and financial complications for both parties.

How to Use This Form

Select your county from the list above
Download the county-specific form
Fill in the required information
Have the document notarized if required
Record with your county recorder's office

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Common Uses for Full Release of Memorandum of an Installment Sales Contract

Establish the terms of a seller-financed real estate sale
Sell a family property with flexible payment arrangements
Record a memorandum to protect the buyer's equitable interest
Sell property with seller financing instead of a traditional mortgage
Assign a seller's interest in a land contract to a new party
Provide public notice that a buyer holds an equitable interest in real property

Compare other Illinois deed forms and documents

Quitclaim Deed Gift Deed Correction Deed Warranty Deed Special Warranty Deed Grant Deed Easement Deed Termination, Cancellation of Easement / Right of Way Mineral Deed Mineral Deed with Quitclaim Covenants Special Power of Attorney for the Purchase of Property Special Power of Attorney for the Sale of Property Statutory Short Form Power of Attorney for Property Mortgage Secured by Promissory Note Release of Mortgage Contract for Deed Memorandum of an Installment Sales Contract Deceased Joint Tenant Affidavit Transfer on Death Instrument Transfer on Death Revocation Notice of Death Affidavit and Acceptance Trustee Deed Executor Deed Administrator Deed Contractor 60-Day Residential Notice Mechanics Lien Mechanics Lien Subcontractor Mechanics Lien Preliminary 60 Day Notice Mechanics Lien Preliminary 90 Day Notice Waiver of Lien to Date Unconditional Waiver and Release of Mechanic Lien Subcontractor Final Waiver and Release of Lien Disclaimer of Interest Lis Pendens Lis Pendens Release Certificate of Trust

Important: County-Specific Forms

Our full release of memorandum of an installment sales contract forms are specifically formatted for each county in Illinois.

After selecting your county, you'll receive forms that meet all local recording requirements, ensuring your documents will be accepted without delays or rejection fees.

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