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This form serves as notice that the Seller has agreed to sell, and Buyer has agreed to buy a specific property. Record this instrument when a Contract for Deed, Land Contract or Buy-Sell Purchase Agreement has been completed. This is done for a variety of reasons.
When parties want the details of a contract to be kept private.
When the Seller doesn't record the original Contract, very important for the Buyer to record a Memorandum of Contract. It serves as notice that the buyer is in fact purchasing the property, providing protection from further liens or encumbrances being placed on the property by the Seller. Memorandums are frequently recorded by buyers alone.
When owner financing is involved, and a buyer needs to finance property at a later point in time, a Lending Institution will most likely require a recorded Memorandum document. Further, banks like to see a history of payments, at least 12 months, often referred to as "Seasoning" a recorded Memorandum proves the subject property was under contract at a specific time.
For use in Kentucky Only.
Deeds.com Kentucky Memorandum of Contract Forms Have Been Updated as Recently as Tuesday January 31, 2023
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