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 promissory note serves as a legal instrument used to record a borrower's promise to repay a loan or debt. In the case of Illinois Promissory Note for Past Due Rent, it specifically pertains to the outstanding rent payments that a tenant owes to a landlord. The Illinois Promissory Note for Past Due Rent is a document that establishes an agreement between a landlord and a tenant regarding the repayment of rent that is past due. This note outlines the terms and conditions of the repayment plan, ensuring that both parties are aware of their responsibilities. Key elements that are typically included in an Illinois Promissory Note for Past Due Rent are: 1. Parties Involved: It identifies the names and contact information for both the landlord and the tenant involved in the agreement. 2. Date: The exact date when the Promissory Note is created is mentioned for future reference and documentation. 3. Amount Owed: The total amount of past due rent is specified, including any additional fees or charges accrued during the period. 4. Repayment Terms: The note clearly outlines the agreement between the parties concerning the repayment plan. This includes the agreed-upon repayment amount, due dates, payment frequency, and any interest or late payment penalties, if applicable. 5. Security Measures: Some promissory notes may require the tenant to offer collateral as security for the repayment of past due rent. This could be in the form of a security deposit or any other assets agreed upon by both parties. 6. Signatures: Both the landlord and the tenant are required to sign the promissory note, acknowledging their acceptance of the terms and their commitment to fulfilling the repayment plan. It's worth noting that while there may not be different types of Illinois Promissory Note for Past Due Rent in terms of the legal document itself, variations can occur based on the individual agreement between the landlord and tenant. These variations could cover factors such as the length of the repayment period, interest rates, and any additional terms unique to the particular circumstances. To sum up, an Illinois Promissory Note for Past Due Rent is a legally binding agreement that establishes the terms for the repayment of overdue rent between a landlord and a tenant. Using this document ensures clear communication and understanding of the repayment plan, ultimately promoting a fair and mutually agreed-upon resolution.
