A form is where the Seller has agreed to accept a promissory note as payment of the earnest money.
Alabama Earnest Money Promissory Note
State:
Multi-State
Control #:
US-00472D
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
Earnest money is always returned to the buyer if the seller terminates the deal. While the buyer and seller can negotiate the earnest money deposit, it often ranges between 1% and 2% of the home's purchase price, depending on the market.
The use of an earnest money promissory note usually contemplates the existence of a purchase agreement for real property. The enclosed document assumes that a purchase agreement will be created and signed by the parties, but that agreement is not provided as part of this form.
Earnest money is also referred to as good faith money. In other words, it is a payment made by the buyer at the time an offer to purchase is written that demonstrates to the seller, they fully intend to close on the sale of the property.
An earnest promissory note shows good faith commitment to purchase an asset and outlines the aspects of the purchase agreement between a buyer and seller.
The parties should sign only one original note, and the seller or escrow agent should keep that document. If you are the buyer, you will want to keep the note in the hands of an escrow agent or company.
Typically I suggest that we hold 2% to 3% of the purchase price as earnest money.
As promissory notes are legal and enforceable, banks will often accept them as they know they can get their money back if you fail to repay the loan. For your promissory note to be legal, you can print off a promissory note template online, fill in your details and sign it.
Deposit Promissory Note means a debt instrument issued by the Bank; upon maturity the Bank is obliged to pay to the Client the Amount Payable. Concurrently the Bank ensures the custody of such promissory note.
Mortgage notes, or promissory notes, are financial instruments that define the terms of a loan used to purchase property. People who hold a mortgage note for a home, business or property can sell it for a cash lump sum to a buyer in the secondary mortgage note industry.
The owner must be aware that the earnest money deposit will be made in the form of a promissory note (i.e., not in cash) before it accepts the purchase offer. This fact must also be stated clearly in the purchase agreement itself.
