What is the Difference Between a Notice of Interest and a Memorandum of Contract?

The NOI is a document that states that a specific buyer has contracted with the homeowner/seller via a legal and binding contract to transfer the property to the named buyer in the future. A copy of the contract usually does not have to be included in the filing in the public record.A document that is to be recorded in the public record must be signed by the applicable parties involved (buyer and seller), or by the individual stating a specific sets of facts that he is attesting to are factual and true. In most states, there must be at least one non-related witness to each signature and the document must be notarized by a legal http://coaststationery.com/index.php notary or designated representative of the court system.

The notarization of signatures can be an issue if the buyer doesn't bring a notary with him to the seller's property. Options to resolve this include taking the seller to a notary's office, bringing in a traveling notary, or only have documents signed that do not need a notary, such as a purchase and sale contract and a NOI.The MOC is likewise a notice designed to be recorded in the public record and has the same characteristics as an NOI except the signatories are both the homeowner and the buyer. The MOC is much more powerful than a NOI because it is specifically signed by the seller who acknowledges that a purchase and sale contract exists between himself and the buyer. There should never be a question that the seller didn't know he was selling his property if the seller changes his mind and makes that claim.To be able to record the MOC in the public record, a notary has to notarize the document and one or two unrelated witnesses, depending on your state's requirements, must sign at the time of the seller's signing. This may be impractical when the original signing of the contract takes place. Because the buyer wants to protect himself, he needs the MOC to be legalized by the notary and the witnesses.In practicality, there is a solution that will eliminate the notary being present at the signing of the MOC. When the investor has the original purchase and sale contract signed, he should have a MOC signed but not notarized. I actually leave off the place for the notary's signature and seal but include the place for the non-related witnesses. Neighbors, or friends of the seller quality for the witnessing. So now I have a signed MOC that can't be recorded. However, I can make a NOI that only requires my notarized signature and that stipulates that the seller has signed a MOC and it is attached.

In summary, if you want to protect yourself against Deal Stealers, use an MOC or at least a NOI on every deal. Much more importantly, get your Disclosure Documents signed to cover yourself against any state or Federal Anti-Investor Statutes to strengthen your right to any deal where you get involved. These are not just for homeowners in foreclosure or contemplating foreclosure, they are for every seller you come in contact with, the exception is institutional sellers in REO deals. Always contact a local attorney for questions regarding legal documents.