Promissory Note
The borrower's written promise to repay a debt, which is the instrument that actually creates the obligation.
A promissory note is the borrower's written promise to repay a loan on stated terms. It is the document that creates the debt. The note states the amount, the interest rate, the payment schedule, and the terms of repayment.
The note works together with the deed of trust. The note creates the debt; the deed of trust pledges the property as security for that debt and gives a trustee the power of sale.
On the exam
Exam trap
Tested in
Financing & Settlement (6% of the exam)
From definition to recall
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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.