What is a Promissory Notes?

This blog discusses the role the promissory note plays in real estate financing and what it is. Everyone financing real estate with a bank has to make a promissory note.

What is a Promissory Note?

Let’s take the example of Ramesh. If Ramesh is a first-time homebuyer who has been approved for a loan sufficient to buy the house. At the closing of the sale, he will have a mountain of paperwork to contend with. The promissory note is one of the most important legal documents to understand and review carefully before signing. 

Written and signed promissory notes are promises to pay a certain sum of money (Including interest) on the demand or a certain date. Promissory notes are often referred to simply as a note. The person who promises payment is called the maker, and the one who will receive payment is called the payee.

The promissory notes are also known as Commercial paper, IOU, Note payable

Conclusion

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