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You need to check the practices in your area. In some areas promissory notes are accepted but must be paid the same day the offer is accepted. Most people want a cash deposit.
You need to check the practices in your area. In some areas promissory notes are accepted but must be paid the same day the offer is accepted. Most people want a cash deposit.
You need to check the practices in your area. In some areas promissory notes are accepted but must be paid the same day the offer is accepted. Most people want a cash deposit.
You need to check the practices in your area. In some areas promissory notes are accepted but must be paid the same day the offer is accepted. Most people want a cash deposit.
Wiki User
∙ 10y ago
Wiki User
∙ 10y agoYou need to check the practices in your area. In some areas promissory notes are accepted but must be paid the same day the offer is accepted. Most people want a cash deposit.
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When should one get a promissory note?
A promissory note is to provide and record details of a loan. One should receive one if a personal loan, business loan or real estate transaction has taken place. A promissory note is legally binding and can be used in a court of law if the borrower does not pay. It is a more complicated version of an IOU.
Would a promissory note be null and void if nothing was ever lent or borrowed?
A promissory note is an unconditional promise to pay a fixed amount at a fixed time accruing a fixed interest thereafter.Promissory notes differ from IOUs in that they contain a specific promise to pay, rather than simply acknowledging that a debt exists. In common speech, other terms, such as "loan," "loan agreement," and "loan contract" may be used interchangeably with "promissory note" but these terms do not have the same legal meaning.So the answer depends on whther this is a true promissory note or an instrument that was created to memorialize a transaction that wasn't completed.ClarificationThe answer is that if there is a fully executed promissory note then it can be enforced in court. A fully executed promissory note is absolute evidence that the borrower owes the lender. A defense that the borrower never received the money would be difficult to prove. If the funds were not transferred to the borrower there should not be a fully executed promissory note.First, the promissory note should only be signed by the borrower at the same time the funds are handed over. Second, if one was executed and the funds were not paid over to the borrower then the promissory note should not be signed by the borrower and if signed, it should be destroyed since the loan was not completed.
What does rbj escrow mean?
RBJ escrow is a software used in the Escrow industry that performs and maintains the escrow process from beginning to end
Are a mortgage and promissory note the same?
No. The term mortgage is many times used by consumers and others to refer to both a note and a mortgage but they are not the same. A note is a promise to pay. An 'I owe you' committing the borrower to pay the lenders and setting out the terms of the loan. A mortgage is one form of a security agreement. The document sets out the terms of the security provided by the borrower to the lender to protect the note. A person has to own the property before they can provide a security agreement that will create a lien or charge on the property. Technically that means a home buyer will need to go on title before the mortgage can be used to put a lien on the property. A little chicken and egg but generally handled through escrow by a lawyer, solicitor or escrow agent. Many times there will be one physical document that contains the note and the mortgage. In some US states a borrowers will sign a note and a trust agreement. Trust deed states is a term for them. Rather than use a mortgage that requires court action a trust agreement will allow a third party to sell off the asset, the house, without court action. Cheaper and faster so the lenders are more open to making the loan in the first place. Less risk to the lender, lower costs to the borrower. No, they are not the same, but they work together. A promissory note says, "I am borrowing $X from you and promise to pay you back $Y per month which includes interest of Z% per year. On DATE, the loan will mature and I will pay you the outstanding balance at that time." But that is just a promise. What does the lender do if the borrower doesn't perform according to the terms of the note? That's where the mortgage comes in. The mortgage document (or Deed of Trust in some states) pledges ownership in a property as collateral for the promissory note. It says, "Here is the legal description of a property I own. If I don't pay this note on time and in full amounts due at each time, then you can foreclose the note and accept this property as payment."
Is a 30 year fixed loan home collateral?
Not sure what the question is. If you take out a mortgage loan on a home. the Promissory Note is used to show the debt (the promise to repay) and a mortgage lien is placed on the home to show that the home is collateral for the Note if the promise to repay isn't kept. Does that answer the question?
Can an unsecured promissory note be used for a deposit on purchasing a home?
No. An unsigned promissory note has no legal value whatsoever.
What is a sentence for promissory note?
I needed to sign a promissory note for my student loan money.The bank is legally owed money when you sign a promissory note.The promissory note was only one page long but used complicated language.
What is an escrow deposit?
An escrow deposit is money put down to hold a contract to purchase real estate. The deposit should be given to a 3rd party such as a realty agent to hold. When you are attempting to purchase a business, you usually put up an 'earnest money deposit' to be placed in escrow. The deposit money does not belong to the seller. The last person you want to give it to, to hold onto until closing (settlement, passing of papers) is the seller! If the deal sours and the seller has already used the money ("Oh, he told you it would go into a special fund? It did...") it may be extremely difficult to get your deposit back. Perhaps in the seller's mind he thought it was his to keep. Give it to a third party to hold! If you are buying a FSBO (for sale by owner) give it to an escrow agent, escrow title company, attorney, or you can go to the bank and set up a special escrow account. (This may vary by state law. I just tried to put a deposit into it's own escrow account and the bank will not let 'escrow' be on the account as it implied they were the escrow agent and they want no liability or part of a dispute.)
Does destroying a promissory note establish that the debt has been satisfied or is a release of promissory note required?
It would be best to keep the promissory note, ask for a release, or receipt of payment in full and, if there is any question in your mind regarding future issues, copies of the checks you used to pay the debt. If you paid cash, definitely get the release.
When should one get a promissory note?
A promissory note is to provide and record details of a loan. One should receive one if a personal loan, business loan or real estate transaction has taken place. A promissory note is legally binding and can be used in a court of law if the borrower does not pay. It is a more complicated version of an IOU.
Would a promissory note be null and void if nothing was ever lent or borrowed?
A promissory note is an unconditional promise to pay a fixed amount at a fixed time accruing a fixed interest thereafter.Promissory notes differ from IOUs in that they contain a specific promise to pay, rather than simply acknowledging that a debt exists. In common speech, other terms, such as "loan," "loan agreement," and "loan contract" may be used interchangeably with "promissory note" but these terms do not have the same legal meaning.So the answer depends on whther this is a true promissory note or an instrument that was created to memorialize a transaction that wasn't completed.ClarificationThe answer is that if there is a fully executed promissory note then it can be enforced in court. A fully executed promissory note is absolute evidence that the borrower owes the lender. A defense that the borrower never received the money would be difficult to prove. If the funds were not transferred to the borrower there should not be a fully executed promissory note.First, the promissory note should only be signed by the borrower at the same time the funds are handed over. Second, if one was executed and the funds were not paid over to the borrower then the promissory note should not be signed by the borrower and if signed, it should be destroyed since the loan was not completed.
If a borrower dies with a promissory note are heirs responsible for payment?
They are not personally liable, except in the sense that the assets in the estate must be used to pay the promissory note. Thus there will that much less in the estate for them to inherit. If there are insufficient asset to pay the debt, then the holder of the note loses out on the amount that cannot be paid out of the estate.
What does rbj escrow mean?
RBJ escrow is a software used in the Escrow industry that performs and maintains the escrow process from beginning to end
Why notes payable instead of accounts payable?
Notes Payable is used to show that it's a note. A note is determined by the signing of a Promissory Note or some similar contract. For example, when you purchase a vehicle (unless you are purchasing said vehicle with cash) you sign a contract (Promissory Note) in which you pay X amount by a certain day each month.
Important documents used in BUsiness transactions?
commercial paper such as promissory note, bill of exchange, repurchase agreements and etc...
What is an escrow account used for?
Escrow account is used to pay the taxes and insurance of the property
Who is the person who creates and signs promissory notes?
A promissory note is a written promise to repay a loan or debt under certain terms. The party who makes the promise is the promisor (also called the maker or issuer). The person to whom the promise was made is the promisee. A promissory note is generally an unsecured obligation. (However, it can be used in combination with a mortgage to secure real estate.) If it is not paid the promisee can sue in court as long as the note is valid and within the statute of limitations for collection. An attorney can draft the note, forms can be purchased or the parties can draft their own agreement. However, only a valid promissory will stand up in court if the promisor fails to pay.
