Fill Out Legal New Jersey Promissory Notes Forms For Free

Promissory notes do not need to be notarized. The borrower only needs to sign the document to make it legally enforceable. A witness may be helpful if one party contests the note, but a notary is not necessary.

Promissory notes can be formalised, but even informal ones are considered valid contracts. A payee can file a lawsuit against the borrower in case of a default. Technically, a note written on a scrap of paper and signed by both parties involved is just as valid as one drawn up by a lawyer. "Exciting news!

A promissory note must include the date of the loan, the loan amount, the names of both the lender and borrower, the interest rate on the loan, and the timeline for repayment. Once the document is signed by both parties, it becomes a legally binding contract.

Commonly Includes (5) The Parties ? Full names and addresses of the borrower and lender. Principal Amount ($) ? The original amount of money owed. Interest Rate (%) ? Percentage of the principal amount paid for the loan. Maturity Date ? Final date when the principal + interest must be paid.

Even if it is not required, having an objective third party witness the signing of the note will be better evidence when you need to enforce the repayment of the note. Signing the note in front of a notary public is the best evidence that the Borrower signed the note. Who should sign the promissory note?

You can use a template or create a promissory note online. But before you begin, you'll need to gather some information and make decisions about the way the loan will be structured. First, you'll need the names and addresses of both the lender (or "payee") and the borrower.