OOH Today Legal Q&A
andy@mcdonaldlawpllc.com
https://www.mcdonaldlawpllc.com/
Give the World Notice of Your Billboard Lease
Make your life easier and file a Memorandum of Lease to give the world notice of your billboard lease. A memorandum of lease plays a pivotal role in protecting a billboard company’s rights and interests. While the lease agreement itself outlines the terms and conditions of the tenancy, recording a Memorandum of Lease provides an added layer of security, offering several key benefits – chiefly among them that it provides notice of your company’s leasehold interest in the property. By recording a memorandum with the relevant local authorities, typically the land records in the county clerk’s office, the details of the lease become a matter of public record. This public visibility serves as constructive notice to third parties, ensuring that potential buyers, lenders, or other parties are aware of the existence of your billboard lease. Moreover, it establishes a priority of interest, safeguarding your company’s rights against subsequent claims or transactions involving the property.
Recording a Memorandum of Lease acts as a safeguard for a billboard company, particularly in situations where the property undergoes a change in ownership. In the absence of a recorded memorandum, new property owners might not be aware of existing lease agreements. Recording the memorandum helps protect your company’s right to possession, preventing any potential conflicts or attempts to terminate the billboard lease prematurely. While there are other “notice” arguments a billboard company can make in the absence of a filed memorandum, such arguments may best be made at the expense of retaining an attorney, especially in cases where the landowner is represented by counsel.
Leases are legally binding contracts, and any modifications to the terms should be executed with care and documented appropriately. Recording a Memorandum of Lease helps prevent unintended modifications by providing a clear reference point for the original terms of the lease. This becomes especially crucial in long-term leases, where changes in circumstances might lead to amendments. The recorded memorandum ensures that the original agreement remains intact and can be referred to in case of disputes.
From a landowner’s perspective, a property with a recorded Memorandum of Lease is often more marketable. Prospective buyers can assess existing lease agreements, allowing for informed decision-making. This transparency contributes to a smoother sales process, as potential buyers can evaluate the property’s income-generating potential and the terms of existing leases. The recorded memorandum eliminates surprises and instills confidence in the property’s investment value.
A recorded Memorandum of Lease benefits both landowners and billboard companies. It provides a public record of the lease agreement, ensuring transparency, protecting a billboard company’s rights, and enhancing the marketability of the property.
About the Author: Andy McDonald works for his law firm, McDonald Law, PLLC. He is an AV Preeminent Martindale-Hubbell Peer-Review rated attorney and has practiced law and dealt with billboard issues since he first became licensed in 1999. Andy is licensed in Mississippi, New Mexico, Oklahoma, and Texas.
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