What Is a Mortgage Instrument and Promissory Note?

Florida state law empowers promissory notes to create a precise, legally binding record of a loan – such as a mortgage – and the borrower’s obligations regarding repayment of the loan.

A promissory note is a protection for the lender that gives them the legal right to seek repayment in the event of a borrower defaulting on the loan. Florida Mortgage Instrument and Promissory Note would be needed to execute the sale of a mortgage-funded piece of property.

A Mortgage Instrument and Promissory Note provides structure to a loan transaction by outlining the method, amounts, and timeline for the repayment of the loan. It also provides security to the lender because the promissory note can be presented in court should the borrower default and a legal complication arise.

A Florida Mortgage Instrument and Promissory Note does not need to be notarized to be legally binding. It does however require a witness to the document’s signing by both impacted parties, the lender and the borrower.