Promissory Note (Real Estate)

Promissory Note (Real Estate) Template for Pakistan

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Key Requirements PROMPT example:

"I need a Promissory Note (Real Estate) for a PKR 15 million loan secured against my commercial property in Lahore, with monthly installments over 5 years starting March 2025, including a prepayment option after 2 years."

Document background

The Promissory Note (Real Estate) is a crucial legal instrument in Pakistani financial and real estate transactions, combining elements of a negotiable instrument with real property security. This document is typically used when a party requires financing secured against real estate, whether for property acquisition, business expansion, or other purposes. The document must comply with the Negotiable Instruments Act, 1881, Transfer of Property Act, 1882, and other relevant Pakistani legislation. It contains essential details including the promise to pay, payment terms, property description, and security enforcement mechanisms. The note's real estate security component provides additional protection to the payee while offering potentially better terms for the maker. The document requires proper registration and stamp duty payment under Pakistani law to be legally enforceable.

Suggested Sections

1. Promise to Pay: Unconditional promise to pay a specific sum of money, including the principal amount in both figures and words

2. Payment Details: Terms of payment including due date, interest rate, and payment schedule

3. Maker Details: Full legal name and address of the person making the promise to pay

4. Payee Details: Full legal name and address of the person to whom or to whose order the payment is to be made

5. Place of Payment: Specific location where the payment is to be made

6. Real Estate Security Description: Detailed description of the real estate property serving as security, including its location and registration details

7. Default Provisions: Consequences of default and acceleration clauses

8. Governing Law: Statement that the note is governed by Pakistani law

Optional Sections

1. Co-Maker Details: Details of any co-makers or guarantors of the note, used when additional security is required

2. Prepayment Terms: Terms and conditions for early payment of the note, included when prepayment is allowed

3. Collection Costs: Provisions for recovery of costs associated with collection, included when maker agrees to pay such costs

4. Waiver Provisions: Specific rights being waived by the maker, included when parties agree to certain waivers

5. Security Enforcement: Detailed procedures for enforcing security against the real estate, included when specific enforcement mechanisms are agreed upon

Suggested Schedules

1. Payment Schedule: Detailed schedule of payment installments, amounts, and due dates

2. Property Documents: Copies of property ownership documents, registration certificates, and property tax records

3. Property Valuation Report: Current market valuation report of the real estate security

4. Title Search Report: Report showing clear title and absence of encumbrances on the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate

Banking & Financial Services

Legal Services

Construction

Property Development

Mortgage Services

Investment & Asset Management

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Credit Administration

Property Management

Investment

Documentation

Relevant Roles

Legal Counsel

Real Estate Manager

Property Lawyer

Finance Manager

Mortgage Officer

Real Estate Agent

Property Developer

Credit Manager

Risk Assessment Officer

Compliance Officer

Real Estate Investment Manager

Property Valuation Expert

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