In California, a "Release of Memorandum and Notice of Agreement' is a legal document used to terminate or release a previously recorded "Memorandum of Contract" (or Memorandum of Agreement) related to real property. This release document essentially removes the contractual notice recorded in county records, releasing any claims, rights, or interests initially claimed in the Memorandum of Agreement. Here's a breakdown of the key aspects, statutes, and guidelines involved:
Key Points
1. Purpose of Memorandum of Contract:
A Memorandum of Contract is often recorded in real estate transactions to publicly record that a contract exists for the property. It typically doesn't disclose the full details of the contract but serves as notice to third parties.

Recording this memorandum protects the buyer's or tenant's interest against third parties by establishing a public record of the contract.

2. Purpose of Release of Memorandum of Contract:
When the obligations or interests under the original contract have been fulfilled, or the contract is canceled or terminated, a "Release of Memorandum of Contract" is filed.

This release formally withdraws the recorded notice, which may be necessary to clear title issues for future property sales or transfers.
Statutory Guidelines and Procedures
California Civil Code and Code of Civil Procedure

Recording Statutes: California's recording laws generally fall under the California Civil Code (Sections 1213 to 1227) and Government Code (Sections 27201 et seq.). These statutes require that real property documents, including memoranda and releases, be recorded with the county recorder’s office where the property is located.

Acknowledgment and Notarization: As with many documents affecting real property, a Release of Memorandum of Contract typically requires acknowledgment before a notary public (Civil Code Section 1185). The notarized document is then suitable for recording.
Key Steps and Considerations

Drafting and Execution: The parties who originally signed the Memorandum of Contract are often the ones who execute the release. The release should specifically reference the original Memorandum of Contract by date and recording information.

Recordation Requirements: The Release of Memorandum of Contract should meet all local county recorder’s formatting requirements, which can vary but often include standard margins, font sizes, and page numbering.

Effect of Recording: Once recorded, the release removes the notice of the original contract from the county records, effectively clearing any encumbrances related to that contract from the title.

California Code of Civil Procedure
Enforcement and Quiet Title Actions: Under California Code of Civil Procedure Section 760.010 et seq., if there is a dispute regarding an improperly recorded or unreleased Memorandum of Contract, parties can seek court relief through a quiet title action or specific performance.

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