Download New York Full Release of Memorandum of Contract for Deed Legal Forms

In New York State, a Release of Memorandum of Contract is recorded to formally remove the notice of a real estate contract that had previously been recorded. This document signifies that the contract (often a purchase and sale agreement or a contract for deed) is no longer in effect, either because the terms of the contract have been fulfilled or the contract has been terminated. Here’s an overview of how and why to record this document in New York:

Why Record a "Release of Memorandum of Contract"
Clear the Title: Recording a Release of Memorandum of Contract clears any potential cloud on the title of the property. A recorded Memorandum of Contract serves as notice to the public that there is an existing contractual interest in the property. When the contract is fulfilled, canceled, or terminated, recording the release removes any claim or encumbrance on the property, allowing the title to be clear for future transactions.

Notify Third Parties: The release ensures that third parties, including potential buyers, lenders, or title companies, are aware that the contract is no longer in effect. It helps avoid confusion during title searches and prevents disputes that could arise if someone assumes the contract is still valid.

Prevent Future Disputes: Failing to record a release could lead to legal issues or disputes over whether the property is still subject to the terms of the original contract. Recording the release provides conclusive evidence that the contract has been fully performed or terminated.

Fulfill Contractual or Legal Obligations: Some contracts explicitly require the release of a memorandum upon fulfillment or termination. Recording the release helps the parties comply with their legal and contractual obligations, ensuring that all steps are properly documented.

Maintain Accurate Public Records: Recording the release helps maintain the integrity of public records. It provides clarity to any party reviewing the chain of title, as it removes any encumbrance or claim related to the contract from the property’s record.