In real estate finance, a note is a written, unilateral agreement in which the signer makes an express and unconditional promise to pay a named person or entity a definite sum of money. The note specifies the amount owed, the repayment terms, and the date or schedule on which payment is due.
A note typically provides for the payment of interest and is commonly secured by a mortgage or deed of trust on real property. While the note establishes the borrower’s personal obligation to repay the debt, the mortgage or deed of trust provides the lender with a security interest in the property.
