The Deadliest Mistake Real Estate Sellers Make

1 Mar 2026 · 1 min

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In this segment, real‑estate specialist Steve D. Valentine warns home sellers about a common but dangerous clause used by cash buyers: the memorandum deed. He explains that many cash buyers in Phoenix insert a provision that records a memorandum deed against the seller’s title, which secures the buyer’s position and can be used to hold the seller hostage if the deal falls through or the seller changes their mind. Valentine advises sellers to refuse to sign any contract that would create such a recorded document, emphasizing that accepting it can jeopardize ownership and future financing.

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The deadliest sin is the memorandum deed, and I would start any conversation with a cash buyer of do you require me to sign anything that is going to record a memorandum deed against my property? If so, I have no desire to talk to you. Here's why. Even the biggest cash buyers in Phoenix use memorandum deeds in their contract, which is a way to secure a position on your title in case you decide to change your mind, or if the price doesn't work out and they cancel, you cancel. They are going to have a recorded document against your title which allows them to hold you hostage.