Definition of "Note"
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.
Popular Real Estate Terms
Are you planning on buying a house? If you are, you’re going to love the Buyer's Market definition. But if you are a home seller, you will wish that term never comes up again in your ...
When an owner of real estate dies interstate, having no enforceable will, the property descends, by operation of law, to the owner's inheritors. ...
Commonly, a covenant refers to a legal treaty or agreement between various parties. Explicitly, a stipulation comes into existence and is signed to confine particular financial transactions ...
Used when determining the worth of an annuity that reinvests the amount of recaptured investment at a risk-free interest rate. ...
An estate constrained from some heirs and dedicated to others on the basis of a certain condition. ...
Combination of insurance policies on property with each providing an additional increment of coverage exceeding the limits of the preceding policy. For example, policy A adds $70,000, then ...
Supplementary narrow pathway, such as to a building. ...
Real estate market where supply significantly exceeds demand enabling potential buyers to obtain lower prices and good deals. ...
Glass containing wire support to make it stronger. There is less chance of glass being broken into pieces and hurting people. ...
Have a question or comment?
We're here to help.