What is the term for a written promise to pay a sum of money at a future date?

A written promise to pay a sum of money at a future date is referred to as a note. This financial document essentially serves as a promissory note, outlining the borrower's commitment to repay the loan under specified terms, including the amount owed, the interest rate, and the timeline for payments.

The note is a critical element in real estate finance, as it formalizes the borrower's obligation and can be enforced legally if the borrower fails to meet their repayment commitments. It is distinct from a mortgage, which secures the loan with collateral (the property being financed), and from a deed of trust, which involves a third-party trustee in its arrangement. A lien, on the other hand, represents a legal claim against the property but does not itself represent a promise to repay money.

Understanding the role of a note is essential in real estate transactions, as it clarifies the financial expectations and responsibilities between borrower and lender.