Definition of "Note"

DAVID SUTTON real estate agent

Written by

DAVID SUTTONelite badge icon

C-21 VAN SYCKEL- GOLDEN POST

A legally transferable debt instrument by which the issuer agrees to pay the payee within a certain time period. Note usually pay a specified rate of interest tied to the market rate of interest. A person may sign his or her note payable promising to pay money to another party, such as a bank or creditor at a later date. The payment includes principal and interest. For example, a $50,000, one-year, 8% note will have a maturity value of $54,000 ( $50,000 principal + $4,000 interest). The $4,000 equals $50,000*8%. Notes may or may not supported by collateral. Some types of notes in connection with real estate follow:
Collateral note: Note in which real estate is pledged for it. Demand note: Note due on demand by the payee, not on the maturity date. Joint note: Note having two or more people being obligated for it. Mortgage note. Time note: Note payable at a definite time. Unsecured note: Note without security.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Doing business as, or DBA, means an official moniker for your enterprise or company. Regularly, a DBA is a state certificate serving as a registration name and issued under a ...

A roof having two slopes on each side. The second slope is longer than the first part of the roof and extremely steep. ...

The external covering finish of a structure which protects it from the elements. Exterior finish materials, including shingles, siding, and paints, are design to resist severe weathering ...

Interest computations based only on the original principal. For example, the simple interest on a $100,000, 8% loan is $8,000. It is compared with compound interest which is applied to the ...

The term “de jure” comes from the Latin “by law” or “by right” and is commonly used to describe something that exists according to the law or by right. ...

Average of income, retail revenue, and population of a locality as a percentage of the entire United States. It reflects the economic status of a particular region. ...

Map showing the kinds of soil in a designated locality. ...

We call a concept ostensible when, at first sight, it appears to be accurate or valid. However, upon closer inspection, it proves to be a half-truth or completely false. For instance, Dale ...

Housing where affirmative action is proactively pursued protecting the housing rights of people of all races, nationalities, and religions. ...

Popular Real Estate Questions