Promissory Note Real Estate

Promissory Note Real Estate

A promissory note is a promise by one person to pay money to another person.

The person to whom the promise is made is referred to the Payee. The person who promises to pay is known as the Payor, or Maker. The Promissory note should be written and signed by the Maker, and should contain a unconditional promise to pay a specified amount of money in a defined time.

Promissory Note Check List

Parties
B. Maker (borrower)
Payee or holder (lender)

Amount of Note

Interest Rate to be charged on the Note
A. Fixed Rate
B. Adjustable Rate

Payments
A. Time and Place of Payments
B. Amount of Payments.

A promissory note should also include what happens if the party fails to repay the note by a certain period of time.