Promissory Note Help Guide

You will start by entering in the relevant party information. The borrower is the party promising to pay back the lender in the promissory note.

Next you will fill out the transaction details. Be as specific as possible in describing what the borrower is receiving from the lender, whether it is a mortgage loan, goods, services, etc. You will then describe how the lender expects to be repaid. You will also have the option to include miscellaneous terms and conditions later in the form builder should you need to further customize your agreement.

Then you will describe whether the lender is requiring any collateral to ensure repayment. In a mortgage agreement, for example, the collateral is the house itself. If the borrower defaults on repayment, then the lender gets to keep or sell the collateral.

Lastly, you will be asked about including a notary and witness. It is always recommended to include a notary to help prove the validity of the document should you ever need to. For the same reason, including a witness is helpful. If possible, it is a good idea to include both.

Executing Your Promissory Note

After you are done filling out the form, simply have the borrower, lender, and any notary and witness available sign the document in each other's presence. Again, although a notary and witness are not required in most jurisdictions, it is always a good idea to include them. When the document has been signed and witnessed you are done! Make sure the borrower and lender each get a copy.

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