Contending with Memorandums of Interest

The Fund has noticed an increase in the number of recorded instruments titled “Memorandum of Interest” or words of similar import (the Memo) affecting real property throughout the state. The Memo typically refers to a Homeowner Benefit Agreement (Agreement) and is recorded in the public records to memorialize the Agreement and give notice of its specific terms. Such Agreements can affect real property in numerous ways and are often purported to be in effect for lengthy terms – decades in many instances. This article explains the Agreements, and their impact on owners’ and purchasers’ title to real property. In addition, this article identifies insuring concerns, and discusses approaches for obtaining satisfactions and releases from said Agreements. Note should be taken that specific Agreement terms may vary and examples discussed here are for illustrative purposes only. Read the article