Legal Question in Real Estate Law in California

Re: Promissary Note

unfortunately it is too late. The promissory note and deed of trust need to be executed at the same time, before you can record the deed of trust in the county recorder's index. Assuming however there is more than it appears to, give me a call.

Good luck

Re: Promissary Note

You need to record a Deed of Trust that secures the Note. Feel free to contact me if you would like to discuss.

Re: Promissary Note

You can record a one page mortgage.

Re: Promissary Note

Promissory notes are rarely if ever acceptable for recording. Even when homeowners borrow on the usual "note and deed of trust" combination, it is the deed of trust which is recorded, and not the promissory note.

Securing your loan is different from recording your loan. Recording alone doesn't secure anything; all it does is give "notice to the world" of the existence of the document recorded.

In order to have security, something must be pledged as collateral. Absent collateral, you are unsecured. The collateral can be real property or personal property or both. You can't create collateral unilaterally. The borrower(s) must assent to the creation of the security interest in the collateral.

If, or to the extent, the collateral to be put up to secure the loan is real property, use of a deed of trust is customary in California, although old-fashioned mortgages are still recognized and occasionally used.

If, or to the extent, the collateral is personal property (such as bank accounts, jewelry, artwork, accounts receivable, stocks and bonds, etc.), you need a "security agreement" in addition to, or as part of, the note. The security agreement can be quite simple, but is needed to create the enforceable security interest in the offered collateral.

Then, you can file a so-called UCC-1 form with the California Secretary of State, which gives public notice of the security interest, and is said to create a "perfected" security interest in the collateral. The UCC-1 is a simple form but must be filled out with great care to be sure it is 100% accurate.

You should have the assistance of a lawyer familiar with secured transactions if you go the UCC-1 route or one familiar with real estate documentation if you use a deed of trust.

Keep in mind that recording a note alone does not create a security interest, nor does getting a security interest alone give public notice thereof.