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What is the difference between note and deed?

To Recap: The Deed is a recorded document memorializing the transfer of property from the Grantor to the Grantee. The Note is an unrecorded paper that binds an individual who has assumed debt through a promise-to-pay instrument.

What else is a promissory note called?

Promissory notes may also be referred to as an IOU, a loan agreement, or just a note. Its a legal lending document that says the borrower promises to repay to the lender a certain amount of money in a certain time frame.

Is a deed the same as a promissory note?

Deed of Trust Versus Promissory Note While a deed of trust describes the terms of debt as secured by a property, a promissory note acts as a promise that the borrower will pay the debt. A borrower signs the promissory note in favor of a lender.

Whats the difference between a promissory note and a deed?

Both documents are used to make sure the seller secures the repayment of the loan. A Promissory note with a deed of trust is like an I owe you (IOU). This is a contract that promises to repay the loan. The deed of trust is the document that secures the loan with the property in case of default.

Can a promissory note be a security agreement?

In general, under the federal Securities Acts, promissory notes are defined as securities, but notes with a maturity of 9 months or less are not securities.

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