Whether notarization is needed can vary by location and specific loan agreements, so it’s advisable to check local regulations and preferences when creating a promissory note.
A handwritten or “informal” promissory note can be legally valid. What matters most is that the document clearly outlines the loan terms, including the loan amount, repayment schedule and the parties involved. While formalizing the note with a typed or professionally drafted document is common for clarity and professionalism, handwritten promissory notes can still hold legal weight if they meet the essential criteria.
Clear terms, signatures and dates state what the borrower receives, and acknowledge that the promissory note is a legal agreement and enforceable if necessary.
A promissory note can be voided or invalidated if the note is based on fraudulent information or contains forged signatures. Also, if either party fails to uphold their end of the agreement or the loan’s purpose is illegal or against public policy, the promissory note may be voided.
