Legal Question in Real Estate Law in California
I feel pressured to sign a promissory note by a lawyer. This letter was amended from the original note which was sent to me but never agreed upon or signed. I am purchasing a home and currently in escrow. This demand to sign is 2 days before closing. I don't know what to do.
of 12 December 2014. The financial terms of the purchase and sale transaction have changed during the intervening month, and we are left to reconcile this account on the following basis:
1. Prior to Closing, ...,,,will sign a Promissory Note which obligates them, jointly and severally, to pay ....,,,the sum of $30,500.00. This sum represents $25,000 which was agreed to be owed between the parties in November, plus $2,500 in attorneys� fees, plus $3,000 ,.......will be depositing into escrow.
2. The Promissory Note will be a �payable upon demand� note that is interest-free, provided that the property is refinanced and this debt is paid in full on or before 15 August 2015, interest shall accrue on the unpaid balance at the rate of four percent (4%) per year.
3. The Promissory Note will be secured by a Second Deed of Trust recorded against the property. The Second Deed of Trust will provide that you waive your �homeowner�s exemption� in the event that ....must foreclose to collect the outstanding balance due on the Promissory Note. The Second Deed of Trust shall be filed after close of escrow.
1 Answer from Attorneys
I'm afraid any attorney representing you would need substantially more information abou the transaction and what you are doing before being able to advise you on this. This is like reading a single line on page 27 of a novel and trying to understand what is going on. It is unclear why a note is being used or what obligations you have agreed to. It is also unclear whether the note is your debt or is a receivable by you. Seek real estate counsel and have them review the entire trancation.
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