There will come a time when a current tenant may fall seriously behind or owe you for something due under the lease, such as an accumulated water bill, a bounced security deposit check or some damages they did to the premises. A promissory note is simply an agreement when one party agrees to pay another party a particular past due sum or currently due sum on a particular date or dates.
Some recommend that a promissory note should be used only with a past or departing tenant owes you money and desires to pay you on a certain date or dates according to the payment arrangement spelled out on the promissory note. These people also recommend never using such an arrangement with a current tenant. The tenant may vacate owing you past due rent, late charges, unpaid utility bills or anything owed under the terms of the lease This Note will memorialize the debt in writing and can be used later if the past tenant defaults, and you wish to pursue the debt.
These same people recommend that a promissory note should not be used with a current tenant who owes you money. They point out that unless the promissory note clearly states that the amount is rent due under the terms of the lease, the landlord may have unwittingly converted past due rent into simply a monetary obligation for which he will not be able to evict the tenant using a Statutory Notice Period. Also suppose the tenant fails to make a payment, what is owed: the full balance all at once; or only that missed payment? This matter may be clarified by an acceleration clause in both the lease and the Note.
A Guam Promissory Note for Past Due Rent is a legally binding agreement between a landlord and a tenant in Guam, specifically designed to address the non-payment or late payment of rent. This document outlines the terms and conditions under which the tenant agrees to repay the past-due rent amount, providing a clear repayment plan to avoid further legal actions or eviction. The Guam Promissory Note for Past Due Rent serves as a written record of the tenant's commitment to repay the outstanding rent within a specified timeframe. It helps establish trust and accountability between both parties, ensuring that the tenant will honor their financial obligations promptly. This promissory note highlights essential details such as the names and contact information of the landlord and tenant, the rental property's address, the amount of rent owed, and the due date(s) when the payments are to be made. It also states the interest rate, if applicable, and any penalties for late or missed payments. In Guam, there are various types of Promissory Notes for Past Due Rent that may exist based on specific circumstances or agreements between the parties involved: 1. Lump Sum Promissory Note: This type of note requires the tenant to repay the entire past-due rent amount in one lump sum payment within a specified period. This option is suitable for tenants with the financial means to settle the debt promptly. 2. Installment Promissory Note: This variation allows the tenant to repay the past-due rent in equal installments over a defined period. The note will outline the number of installments, the amount to be paid in each, including any interest, and the due dates for each payment. 3. Modified Repayment Plan Promissory Note: In some cases, landlords may agree to modify the repayment terms due to extenuating circumstances. This note outlines the revised repayment plan, including changes to the payment schedule, amount, or due dates. Both parties must mutually agree to these modifications. Regardless of the type of Promissory Note for Past Due Rent in Guam, it is crucial for both parties to carefully review and understand the document before signing it. Seeking legal advice or consulting with a real estate professional can provide additional clarity and ensure compliance with local laws and regulations.A Guam Promissory Note for Past Due Rent is a legally binding agreement between a landlord and a tenant in Guam, specifically designed to address the non-payment or late payment of rent. This document outlines the terms and conditions under which the tenant agrees to repay the past-due rent amount, providing a clear repayment plan to avoid further legal actions or eviction. The Guam Promissory Note for Past Due Rent serves as a written record of the tenant's commitment to repay the outstanding rent within a specified timeframe. It helps establish trust and accountability between both parties, ensuring that the tenant will honor their financial obligations promptly. This promissory note highlights essential details such as the names and contact information of the landlord and tenant, the rental property's address, the amount of rent owed, and the due date(s) when the payments are to be made. It also states the interest rate, if applicable, and any penalties for late or missed payments. In Guam, there are various types of Promissory Notes for Past Due Rent that may exist based on specific circumstances or agreements between the parties involved: 1. Lump Sum Promissory Note: This type of note requires the tenant to repay the entire past-due rent amount in one lump sum payment within a specified period. This option is suitable for tenants with the financial means to settle the debt promptly. 2. Installment Promissory Note: This variation allows the tenant to repay the past-due rent in equal installments over a defined period. The note will outline the number of installments, the amount to be paid in each, including any interest, and the due dates for each payment. 3. Modified Repayment Plan Promissory Note: In some cases, landlords may agree to modify the repayment terms due to extenuating circumstances. This note outlines the revised repayment plan, including changes to the payment schedule, amount, or due dates. Both parties must mutually agree to these modifications. Regardless of the type of Promissory Note for Past Due Rent in Guam, it is crucial for both parties to carefully review and understand the document before signing it. Seeking legal advice or consulting with a real estate professional can provide additional clarity and ensure compliance with local laws and regulations.
