Promissory note - Posted by Mark (Or)

Posted by Eli on October 16, 2004 at 15:33:27:

Well put Steve, well put. Something else that I have is a clause at the end that says “If any item in this contract is deemed unenforcable, all remaining items are still enforcable” Ok so that should’t be in quotation marks because it is put more eloquently then that, but you get the point.

By the way. Mark would you mind sending a copy of your agreement my way. I have a similar combination of various contracts and I would be interested in seeing yours. Thanks

Promissory note - Posted by Mark (Or)

Posted by Mark (Or) on October 13, 2004 at 23:34:06:

I am getting ready to sell my first L/D and am a little bit lost on exactly how to construct a note.

Do many people just use Lonnies note as written? I have searched the archives ad nauseum and not been able to find any real good examples.

I would like to include some kind of clause which would help make sure the buyer stays in good with the park. I thought I would include some language that states that if for any reason they were evicted from the park, the note would be in default and all sums due imediately. Can I do this and would it hold up in court?

Thanks in advance for the help. Mark in Oregon

Re: Promissory note - Posted by Tom (GA)

Posted by Tom (GA) on October 14, 2004 at 07:58:02:


I’m sure others use Lonnie’s note as is. I use a combination of Lonnie’s, Ernest’s, Bronchick’s, and others. It’s 3 pages long and includes this clause under DEFAULT, “I fail to pay the lot rent as required to the park owner and abide by park rules.”

It is written as if the Note Maker wrote it, which it should. Meaning everything is “I”. “I will…”, ?If I do not…", “Should I…”.

No mumbo jumbo legalese to confuse the Note Maker.

?I am to pay the lot rent…"
?If I leave the premises unoccupied…"
?If I do not pay the full amount of each monthly payment…"
?My monthly payment will be??

And as far as the buyer being evicted from the park, I don?t know if it would hold up in court. Just because it?s in the Note doesn?t make it enforceable. I think it?s more of a scare tactic. If they are in good standing on the note, I?d let them move it at their cost to another park. No need to disrupt the cash flow. I also have a default clause about them paying their utility bills when due. Would that stand up in court? I don?t think so. Just trying to instill a deeper sense of ownership in the buyers mind.


Re: Promissory note - Posted by Lyal

Posted by Lyal on October 14, 2004 at 07:33:04:

You need to be sure you conform to local requirements. I’d call the local title companies and see if they have or can point you to a template that is tailored to your locale.
All the best, Lyal

Thanks Tom - Posted by Mark (Or)

Posted by Mark (Or) on October 14, 2004 at 09:36:59:

I will heed your advise about the “I”, “My”, etc.

I recently sold a business on contract and also am leasing the property to the buyer. My attorney included clauses in both the note and the lease stating that if one defaults, they both default. Again, I don’t know what a Judge would think of this, but I figure it might help keep the buyer honest. Thanks again, Mark

Re: Promissory note - Posted by Mark (Or)

Posted by Mark (Or) on October 14, 2004 at 09:39:00:

Hadn’t thought of the title co. I’ll give that a shot. Thanks Lyal

Re: Thanks Tom - Posted by Steve-WA

Posted by Steve-WA on October 14, 2004 at 09:55:58:

You say ?my attorney?

Well, duh ? ask them. If you?re really freaked out about having your p?s and q?s just right, do that. But I prefer strength from a different direction . . .

Someone once said that there are two courts to be concerned with ? judicial, and the court of convincing. If you impress upon the buyer particular conditions, and commensurate consequences, and you present it well, then they will believe you, and perform accordingly. Is it ?legal? in a judicial court to call a note due if they do not pay space rent? I dunno, but if the buyer believes that it is, and they perform accordingly, who cares?

I often say that everything is in the presentation. If you present conditions and consequences in a believable way, your buyer will take it as gospel, and perform accordingly. And isn?t that what you want?

Lonnie says that in a business relationship such as this, someone is going to be trained. You are either going to train your buyer/tenant, or you will be trained by them. I fully stand by that premise, as a trainer, and a prior trainee.