Here's A Sample Promissory NoteThe following is merely a sample promissory note. It is offered only as an example of what information is contained in a note, and how simple a document it really is. Be sure to have your attorney prepare the document for your home sale transaction. $80,200................................................................Atlanta, Georgia Date......................................................................August 16, 2007 FOR VALUE RECEIVED I, John B. Good, (buyer) promise to pay to IMA Seller, (seller) the principal sum of Eighty thousand two hundred ($80,200), together with interest on the unpaid principal hereof from the date hereof at the rate of six and four tenths percent (6.4%) per annum, compounded annually and paid when the principal is due. Principal and any accrued but unpaid interest shall be due and payable fifteen (15) years from the date of this Note. Should the undersigned fail to make full payment of principal or interest for a period of 30 days or more after the due date thereof, the whole unpaid balance on this Note of principal and interest shall become immediately due at the option of the holder of this Note. Payments of principal and interest in the amount of $694.23 per month shall be made in lawful money of the United States of America. Payments shall be applied first to interest, then to principal. Payments are to be mailed to: Ms. Ima Seller P.O. Box 789 Atlanta, GA 30303 The undersigned may at any time prepay all or any portion of the principal or interest owing hereunder. The holder of this Note shall have full recourse against the undersigned to the extent of one tenth (1/10) of the face amount of the Note plus any accrued but unpaid interest, and shall be required to proceed against the collateral securing this Note in the event of default before proceeding against the undersigned. Thus one-tenth of the principal is personal recourse and all interest is personal recourse. WITNESS MY hand and seal the day and year written above. /s/ John B. Good This sample promissory note contains each of the essential elements of a note. Those elements are the seller and buyer information,the term of the note, interest rate, principal amount, and the payment amount. Remember, there are at least 169 different ways to sell property so there are equally as many ways to write a promissory note. Even though this appears to be very simple it requires professional skill. Save yourself potential grief and let your attorney prepare the document for you. It's very important to remember that note creation and preparation require professional skills. A properly created note can mean the difference between a very handsome cash return and a note that can't be sold at all. This sample promissory note cannot possibly address all of the issues related to your buyer's unique situation. The professional skills and support you need are available to you within our network of financial associates. See how simple the process is with your free copy of our Property Seller's FREE Financing Guide. This is your step by step instruction for selecting your buyer, structuring the deal, creating the note, and arranging for the sale of the note before your contract with your buyer is even created. This sample promissory note illustrates only 1 of 169 different ways to structure a note. You can see quite a few more in this E-Book.
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