What is promissory note sample
A promissory note sample is a document which is a kind of promise of payment that has to be done by the buyer in due course of time. The promissory note is legally binding and can be used as evidence in court in case the buyer fails to pay back the money or refuses to do so at will. The promissory note for purchase of the real estate property is also supplemented by a mortgage. In case there is failure of payment the mortgage could be sold in order to get the money back. But, before that a notice regarding the same has to be sent to the borrower.
There are various other factors that are important to know in regards with promissory note. A promissory note has limitation of its own. This is true that mortgage could be sold to procure the money indebted but if the borrower declares himself bankrupt the secured creditors are paid before the lender.
The provision of procuring the lent amount by selling off the mortgage is legal in some countries in case of failure of repayment by a stipulated time while the others give options to the borrower to compensate at their will.
The mortgage along with the promissory note is an evidence that the money has to be repaid. Sometimes only mortgage is taken which insufficient an evidence to prove the borrowing of money in the court. There is legal existence of promissory note without mortgage but not Vice a Vis.