2007-07-24 01:45:41 · 8 answers · asked by Victoria 1 in Business & Finance ➔ Personal Finance
Here's a list of things you need to have on the contract.
1-The date of the loan
2-The amount of the loan
3-How & when it is to be repaid
4-The total amount to be repaid, if you plan on charging them interest
5-action that will be taken if the loan is not repaid in full by a certain date.
6-What the loan is for
Most of all, Be sure to have them and your self sign this agreement in front of a notary, this way, if the relative does default on the loan, you have rock solid evidence that you can take them to court with.
2007-07-24 01:53:03 · answer #1 · answered by ms chip dog 2 · 1⤊ 0⤋
Vic, in most states, there is no formal form for a note to repay money. You do want to have the name of the person borrowing it, who is lending it, the terms of the loan (interest rate, payments, when the note comes due, etc.) and have it signed by the borrower.
If you want to secure the loan, say with a mortgage or deed of trust on the borrower's real estate or other property, the requirements vary from state to state. You would want to consult with an attorney to draft the right documents to properly preserve your right to foreclose on that interest as necessary.
If this is an unsecured loan, I hope you REALLY like your family member....
2007-07-24 10:49:42 · answer #2 · answered by Bryan A 3 · 0⤊ 0⤋
Learn what the laws regarding lending are in your state. Better yet, get a lawyer to write up an agreement. Pay a little money now and you can save a ton of money in the future if all goes bad. If you make illegal terms in your contract then the borrower could use that to void the contract and walk away with your money.
2007-07-25 18:04:47 · answer #3 · answered by A.Mercer 7 · 0⤊ 0⤋
Spell out the terms in agreeable and understandable language. Both of you go to a bank or some place with a notary and have this paper notarized. Give a copy to your family member and keep the original for yourself.
You are very wise to get this in writing, that way there can be no misunderstanding about the terms etc.
2007-07-24 08:52:44 · answer #4 · answered by Don 5 · 0⤊ 0⤋
Many office supply stores have boilerplate agreements covering such transactions. You fill in the amount dates terms etc.
I think that you are making a mistake loaning the money unless this family member is a parent, offspring, or sibling (and siblings are questionable risks).
2007-07-24 10:57:07 · answer #5 · answered by Chef dad 3 · 0⤊ 0⤋
there is a site called LendingCircle and it will help you in drafting a contract for repayment. This site's main purpose is assist folks loaning money to family or friends.
2007-07-24 14:06:00 · answer #6 · answered by JLB 2 · 0⤊ 0⤋
First of all, don't lend money to a family member unless you don't value their friendship. Love and support are all you should expect from a family member. Banks are in the business of lending money. Tell your loved one that you have reconsidered and that they should get a signature loan from a lender.
2007-07-24 08:55:47 · answer #7 · answered by apphelp1973 1 · 1⤊ 0⤋
It's a family member, you shouldn't have to do that.
If you trust that family member that he will repay you, you don't need to put anything in writing.
If you don't trust him or her, then, don't loan him any money.
I gave money to my brother about 6 years ago, it was around 600 euros, he told me he would repay me as soon as he could, he gave me the money back 2 weeks later... I knew I could trust him.
Second example, not as good. My mother-in-law aka "the b****" lol, she asked for $400, which we gave to her nicely, because she told us that she needed to pay her car note. The woman, then, the week later went to delaware to gamble, with our money that is. And we of course never saw our money back.
So, I know who to loan money to, and who not to... Damn, I need to leave and return near people who are ethical and have integrity.
2007-07-24 08:59:41 · answer #8 · answered by Anonymous · 0⤊ 2⤋