Easily Hide Cross Out Option in the Earnest Money Promissory Note

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How to Hide Cross Out Option in the Earnest Money Promissory Note

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- Hey everyone, Paul Vojchehoske here and welcome to The Real Estate Classroom YouTube channel. Just a place that if youre studying for your real estate exam, we help you pass that exam the first time. Okay, in todays real estate exam prep video, were gonna discuss a concept that you have to know called earnest money deposit. I actually received an email from a student that said, Hey, when are you gonna do a video on earnest money deposits? And quite frankly, I thought I already had but it turns out that I hadnt, so I put it to the top of the list. So this week, the topic is earnest money deposits. Okay, so what is an earnest money deposit? How does it interject itself into the entire real estate transaction, and what are the things that you have to know as not only a real estate professional, but more importantly as a student studying for the exam. So understand that earnest money or the earnest deposit is typically money, all right? And when I say money, it comes in the form of

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How risky is a promissory note?

Risk-free notes: The risk with promissory notes is that the issuer will not be able to make principal and/or interest payments. Risk and reward are intrinsically related when investing. There is no reward without some level of risk.

How binding is a promissory note?

Promissory notes are legally binding whether the note is secured by collateral or based only on the promise of repayment. If you lend money to someone who defaults on a promissory note and does not repay, you can legally possess any property that individual promised as collateral.

What makes a promissory note invalid?

Some common triggers that can invalidate and cause problems in a promissory note are: missing the payment schedule or interest rate, loss of the original copy of the document, and others. When a promissory note becomes invalid the lender cannot sue the borrower legally if they fail to make payments.

What does release of promissory note mean?

A Release of Promissory Note mainly serves as a release form after a debt has been paid off. After the person who borrowed money from you has paid his debt in full, as noted under the Release of Promissory Note, both parties are then relieved of their obligations under the note.

What is earnest money in the form of a promissory note?

Earnest money deposits can take any form agreed to by the seller. In some cases, the buyer will offer an earnest money promissory note instead of making a direct payment. This gives the buyer some assurance that it will not lose the money deposited if the deal falls through.

Can you back out of a promissory note?

The debt owed on a promissory note either can be paid off, or the noteholder can forgive the debt even if it has not been fully paid. In either case, a release of promissory note needs to be signed by the noteholder.

How do I show a promissory note is paid in full?

Place a signature beside the paid in full notation. The lender must sign and date the front of the promissory note beside the paid in full notation. The date the lender includes on the promissory note should be the date on which the borrower made the final payment on the loan.

What does it mean to cancel a promissory note?

Updated November 19, 2020: If you need to cancel promissory note, this process involves voiding a document in which one party promises to pay another party a set amount of money.

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Hide Cross Out Option in the Earnest Money Promissory Note