DIY Legal Forms

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Promissory Note for Shared Appreciation Mortgage

$---------- [Principal Sum]


FOR VALUE RECEIVED, [Name], of [Address], hereinafter referred to as "Borrower", promises to pay to [Name], of [Address], hereinafter referred to as "Lender" or order, at [Address] or at such other place or places as Lender (which term shall include successor in interest to Lender) may designate, the principal sum of ---------- dollars ($----------) with interest from the date hereof at the rate of ---------- percent (----------%) per annum payable monthly together with a payment of Final Additional Interest as explained fully below.

Interest only shall be payable in monthly installments of ---------- dollars ($----------) on the first day of each month hereafter, beginning [date]. The entire unpaid balance of the principal and interest, together with Final Additional Interest as defined in a certain Loan Agreement of even date between Borrower and Lender, together with all costs of collection of said principal and interest or any part thereof, shall, unless earlier due and payable as hereinafter provided, be due and payable on the earlier to occur of

(1) [Date] or

(2) the sale or other transfer of the property located at [address].

If any monthly installment in respect of interest under this Note is not paid when due and remains unpaid for [number] days, the entire principal amount outstanding and any unpaid interest payments shall at once become due and payable at the option of Lender. Lender may exercise this option to accelerate during any default by Borrower regardless of any prior forbearance. Whether or not suit is brought to collect this Note, Lender shall be entitled to collect all costs and expenses of such collection, including, but not limited to, all attorney fees.

If Lender has not received the full amount of any monthly payment of interest or other payment due under this Note by the end of [number] calendar days after the date such payment is rovided for in this Note shall be given by mailing such notice by certified mail, return receipt requested, addressed to Borrower at the Property Address as hereinafter defined, or to such other address as Borrower may designate by notice to Lender.

Any notice to Lender shall be given by mailing such notice by certified mail, return receipt requested, to Lender at the address stated in the first paragraph of this Note, or at such other address as may have been designated by notice to Borrower.

The indebtedness evidenced by this Note is secured by a first Mortgage on the property located at [Address] to be recorded in the [Name] County Registry of Deeds.

Executed on [Date].


[Name], Borrower


[Name], Lender

This Section for Notary:


STATE OF -------)

) ss: [Date]

COUNTY OF ------)

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.


[Name of Notary Public]

My commission expires: [date]