Why should you use promissory notes?
The essence of a promissory note is a promise. The promise is where a borrower agrees to pay the lender back at a future date, usually with interest. The promissory note, which is a contract, normally contains the amount owed; the interest rate; due date (maturity date); and the schedule for repayment, if applicable. The most common form of a promissory note is a mortgage promissory note. A mortgage promissory note, unlike other promissory notes, can be very long and contain every conceivable circumstance to protect the lender.
These terms, however, are necessary from the standpoint of the lender and are most often the direct result of costly litigation in the past. Often times, most people loan money without any documentation. This makes it difficult for all parties involved when no promissory note is executed. For lenders, it makes it difficult if a loan took place; and for borrowers, it makes it difficult to prove payments are due and when it is satisfied. If you contemplate owing someone money or will lend anyone any amount of money, it would be wise to contact an attorney.The attorneys at SG Law Group can help with these types of contracts and are aware of the terms to look for in aiding its clients to obtain the best deal possible.
Benefits of a Promissory Note
- Documents a loan occurred.
- If drafted correctly, corrections can be recorded to give notice to all of the loan.
- Can potentially be used during litigation regarding proof of the transaction.
How long does it take to create a custom Promissory Note?
Approximately 1-2 business days*
*Depending on Specifications
Why SG Law Group to create your custom Promissory Note?
At SG Law Group, we can tailor a Promissory Note to fit your needs and make sure it is properly drafted to protect the borrower and lender.
Hire an affordable, professional Attorney to properly draft your legal agreements such as a Promissory Note Today!