Does a promissory note need two signatures?

Without signatures, the promissory note has no legal foot to rely on. In general, the law does not require signatures to be attested or notarized. However, these two steps can add a layer of protection, especially if the two parties don't know each other and don't trust each other. One or more individuals may be listed as borrowers of a mortgage loan.

Each person applying for the mortgage is listed on the promissory note as a promisor and must sign the promissory note. For example, if you buy a house as your sole and separate property, you just need to have your signature on the note. If you and another person, such as your spouse, buy a home together, both firms must appear. A notary public will witness the signing and will also sign and seal the note.

It is preferable that there are two separate Witnesses. These two Witnesses can be the same for each person signing the Promissory Note; it is not necessary for four different people (two for each signer) to sign as witnesses for a Promissory Note. Sometimes, the borrower's and lender's signatures aren't enough to make a promissory note bulletproof in court. Be sure to consider your relationship and level of trust with the other party before considering notarizing a promissory note.

The lender usually keeps the original copy of a valid promissory note, but the borrower must also keep a copy of the signed document. By simply plotting the terms of a loan, a promissory note details an agreement between a borrower and a lender. A promissory note is used to “get it in writing” on a loan of money or property between two people, including between family members. Promissory notes can also be secured by a guarantee, but even if they are not, they are still legally binding.

A secured note secures the amount borrowed with an asset of value, such as a house or vehicle. By placing all relevant details in writing, a promissory note ensures clarity of payment due dates and amount of payments. For smaller amounts of money, you can easily use a do-it-yourself approach to writing promissory notes. A secured note gives the lender stronger peace of mind that they will recover their investment.

A promissory note for a mortgage contains key information: the parties involved, the amount of the debt, the repayment terms and any applicable clauses. A third factor that could invalidate a promissory note is if the original document is lost or if it has been altered without both parties agreeing (and signing) the changes. A person who does not repay a loan detailed in a promissory note may lose an asset that secures the loan, such as a home, or face other actions. The promissory note must be signed by all involved representatives of both the lending party and the borrowing party.