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
English-style home. It is usually 2-stories high. The roof is of a hip type. The chimney is on the side of the home. ...
Agreement by a lender to loan money to suitable borrowers within a given time period but without identifying those borrowers. ...
Legal obligation to pay for a benefit received as if a contract has actually occurred. This may arise in a few cases so that an equitable situation occurs. An example is when a homeowner ...
Additional tax liability that the IRS deems to be owed by a taxpayer. A taxpayer can argue the correctness of a deficiency with the IRS. There can be an appeal to the Tax Court without ...
Considerations used by lenders in appraising a prospective homebuyer' credit application. They are: Character, Capacity (cash Flow), Capital, Collateral and Conditions (economic status) ...
Standard language in real estate contracts and prospectuses-usually in small print. ...
Metal hardware within the construction that is typically not visible, such as bolts, nails, and screws. ...
Capability of a party to enter into a contract such as having the financial and physical resources as well as mental competency to meet contractual commitments. ...
When answering the question of what is a real estate investor, several aspects should be considered. First, a real estate investor, also known as a real estate entrepreneur, allocates ...
Have a question or comment?
We're here to help.