In real estate and finance, negotiable refers to an instrument or document that is capable of being transferred or assigned from one party to another in the ordinary course of business. A negotiable instrument allows the rights it represents to pass to a new holder through proper endorsement or delivery.
Common examples include promissory notes and other financial instruments used in real estate transactions. The negotiable nature of these documents facilitates lending and investment by allowing obligations to be bought, sold, or transferred without changing the underlying terms.
