Posted by Mike in WI on July 06, 2001 at 12:28:26:
Hi Erik,
By the way, congratulations on your new family!
Now…on to the stuff…
A “note” as defined by the real estate courses is a financial industry name for “promissory note” – in other words a loan. If you borrow $1000 from me and we write it up on paper that you owe me the money, that document is called a promissory “note”.
This is used with real estate purchases when you get a loan on a house as well. If you buy my house and get a loan for the purchase, there are two documents that are created – a “note”, and a “mortgage”.
The “note” is the promissory note that says you owe me the money over time, to be paid $$$ per month, at %%% interest rate, etc.
The “mortgage” is the document that says "If Erik fials to pay Mike back as agreed, Mike gets to claim ownership of the house via “foreclosure proceedings”. So if you default on the loan (fail to pay me on time), I can begin forclosure proceedings on the house to get ownership of it back from you.
FORMS AND DOCUMENTS:
Actually Carlton’s course has these included with your materials in the “Legal Forms Portfolio”. You should have the Real Estate Sales Contract and the Promissory Note somewhere in there. As far as the Mortgage documents, the title company that you use in your purchases (or a lawyer) would draw that up for you. (At least that’s my understanding).
Hope this helps a bit.
~~ Mike ~~