How to release a memorandum of contract

Filing a memorandum of contract is only half of the story. The other half — the part investors forget and owners get stuck on — is taking it back off. A memorandum records notice of a live deal; once that deal is finished, the notice no longer describes anything true, and it should be released so the title is clean again.

What "releasing" a memorandum means

You can't erase a recorded document from the public record — once it's filed, it's part of the chain of title permanently. Instead, you record a second document that cancels the first. For a memorandum, that follow-up is usually a release by affidavit: a sworn statement, signed by the party who filed the memorandum, declaring that the underlying contract has been performed or terminated and that any interest claimed by the memorandum is released.

Functionally it works the same way a release of lien works — a later recording that neutralizes an earlier one. When both instruments show up in a title search, the examiner reads them together and sees that the memorandum has been cleared. The cloud on title is gone.

Why prompt release matters

A memorandum is meant to protect a genuine equitable interest while a contract is alive. The moment that interest ends — you close, you assign and the assignee closes, or the contract terminates — the memorandum stops describing anything real. Leaving it on record is a problem for three reasons:

• It's good practice. A recorded memorandum puts the world on constructive notice. When the underlying deal is done, that notice is misleading, and a careful investor clears it as a matter of course.
• It's sometimes required. Your purchase or assignment contract may obligate you to release; a title company handling the closing will typically insist the memorandum be released before or at funding.
• A stale memorandum is a liability. A forgotten filing can block the owner's next sale or refinance. If it's holding up a legitimate transaction and you won't clear it, you can be exposed to a slander-of-title claim and the costs that come with it.

The healthy way to think about it: plan the release the day you file. A memorandum should have a defined life and a clean exit, not sit on someone's title indefinitely.

The release-by-affidavit process, step by step

The mechanics vary slightly by county, but the sequence is almost always the same:

• 1. Confirm the deal is actually over. The contract has closed, been assigned and closed, or terminated. Only release once the interest has genuinely ended.
• 2. Pull the recording details of the original memorandum. You'll need the instrument number (or book/page), the recording date, and the county — the release has to reference the exact document it cancels.
• 3. Complete the release / affidavit of release. It identifies the same parties, the same property (with its legal description), the original memorandum's recording information, and states that the interest is released.
• 4. Sign it — the filer signs. The party who recorded the memorandum (the buyer/investor or their entity) is the one who releases it, signing exactly as named on the original.
• 5. Get it notarized. As a sworn affidavit, the release is notarized before it can be recorded — an online notarization handles this in minutes.
• 6. Record it in the same county. File the release in the county where the property (and the original memorandum) sits, and pay the recording fee. It records with its own instrument number.
• 7. Keep the recorded release. Save the released instrument number alongside the original. That pair is your proof the memorandum has been cleared.

What you need before you release

Gather these before you start — a release that references the wrong document won't do its job:

• The original memorandum's instrument number (or book/page) and recording date.
• The county where it was recorded.
• The property's legal description, matching the original filing.
• The exact party names as they appear on the recorded memorandum.
• Confirmation the contract is closed or terminated — the fact you're swearing to.

If you filed it: releasing your own memorandum

For an investor, the release is the responsible bookend to the filing. You recorded notice to protect a real deal; now that the deal is done, you clear it and leave the title as clean as you found it. Doing this promptly protects your reputation with title companies and sellers, keeps you clear of slander-of-title exposure, and — practically — makes the next deal in that market easier.

Two related mechanisms help here. Every Jurably memorandum carries a 90-day auto-expiration, so even a forgotten filing won't linger forever; and when a live deal needs more time, you renew rather than letting it lapse. But expiration is a backstop, not a substitute — when your deal actually closes or dies, record the release. That's the clean move.

If it's on your property: clearing one someone else filed

If you're a property owner and a memorandum has appeared on your title, the release ordinarily comes from the party who filed it — once the contract between you is over, they record the release. The straightforward path is to ask them to do so; a good-faith investor will, because leaving a stale memorandum on record is both bad practice and a liability for them.

When the filer has walked away and won't cooperate, or the contract clearly terminated and the notice is now stale, owners are not stuck. Jurably's Owner Release is a neutral compliance utility for exactly this: we handle the release-by-affidavit logistics — notarize and record — to clear the memorandum from your title. It's the same ministerial machinery, pointed at your parcel instead of an investor's deal.

Whether a particular memorandum can or should be released — and by whom — can be a legal question, especially in a dispute. This guide is general information, not legal advice; if the filer contests it or the situation is contentious, talk to a real-estate attorney in your state.

Common mistakes to avoid

• Never releasing at all. The single most common mistake — a memorandum recorded and then forgotten, quietly clouding a title for years.
• Wrong recording reference. A release that cites the wrong instrument number or county cancels nothing. Match the original exactly.
• Skipping notarization. The release is a sworn affidavit; without notarization the county won't record it.
• Filing in the wrong county. The release has to be recorded where the memorandum sits — where the property is.
• Assuming expiration is enough. A 90-day auto-expiration is a safety net, not a recorded release. When the deal is truly done, record the release.

Released promptly, in the right county, referencing the right instrument, a memorandum comes off as cleanly as it went on. That's the whole arc: notice of something true while it's true, and a clear title again the moment it isn't.

Jurably is a self-help filing and notary service, not a law firm, and does not provide legal advice or represent you. This article is general information for real-estate investors and property owners.