What is a Promissory Note in Real Estate? - Definition & Elements

Instructions:

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question 1 of 3

A ____ creates a promissory note and gives it to the ____.

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1. A ____ is a written unconditional promise to pay a specific sum of money upon demand or on a specific date.

2. A ____ is a contract executed by a borrower and lender regarding the terms, conditions and obligations of both parties concerning the debt.

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About This Quiz & Worksheet

Assess what you know about promissory notes in real estate with this quiz and worksheet. Questions will test you on the types of notes and their characteristics.

Quiz & Worksheet Goals

The quiz covers these topics:

  • Who creates and receives a promissory note
  • An unconditional written promise for an amount of money to be paid back
  • A type of contract between a borrower and a lender regarding terms on a debt
  • A person who offers value for a note without any issues regarding it
  • Components of a transaction in real estate financing

Skills Practiced

Practice the following:

  • Reading comprehension - ensure that you draw the most important information on a person who gives a value for a note from the related lesson on promissory notes in real estate
  • Interpreting information- verify that you can read information about transactions in real estate financing and interpret it correctly
  • Information recall - access the knowledge you've gained regarding a contract between a borrower and a lender

Additional Learning

Explore this subject further via the lesson named What is a Promissory Note in Real Estate? - Definition & Elements. The lesson will adhere to the following study objectives:

  • Define holder
  • Understand how a mortgage works
  • Explain a deed of trust
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