In general, promissory notes do not need to be notarized. Generally, legally enforceable notes must be signed by individuals and contain unconditional promises to pay specific amounts of money. They usually also indicate the due dates for the payment and an agreed interest rate. A promissory note only needs the signatures of the parties involved in the agreement, it does not require the recognition of a notary public to be legitimate, 3 minute read.
The lender can also sign the promissory note, but unlike loan agreements, they are usually not required to do so. However, the lender may require the borrower to sign the document in the presence of a notary. This helps ensure the signature. If you want your note to be legally valid, you must duly certify it before a notary.
A secured note secures the amount borrowed with an asset of value, such as a house or vehicle. The lender usually keeps the original copy of a valid promissory note, but the borrower must also keep a copy of the signed document. If you write a promissory note for the reimbursement of a lump sum, you'll usually use a simple promissory note. If the debtor does not comply with the terms of the contract, the lender can use the promissory note to enforce the payment in court.
If you are lending money to an individual or company, you may want to formalize the loan by creating a promissory note. 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. It's important to note that you can also customize a note to fit a specific loan agreement. However, if a borrower doesn't pay a promissory note and won't repay it, the lender can legally own any property the person promised as security.
By placing all relevant details in writing, a promissory note ensures clarity of payment due dates and amount of payments. Transactions such as car loans and mortgages require more complex notes that cover details such as repayment programs, interest rates, and more. Promissory notes are used for all types of loans, allowing almost anyone other than a bank to lend money with a legal safety net. Promissory notes can also be secured by a guarantee, but even if they are not, they are still legally binding.
Because this is a contract, it is important to obtain the promissory note in writing when it is established to be valid and enforceable. A simple promissory note will indicate that the total amount is due on the date indicated; you don't need a payment schedule. A promissory note establishes a clear record of a loan, whether between individuals or between entities.