Skip to content
Pass California

Financing, 9% of the examination

Promissory note

The borrower's written promise to repay a debt on stated terms.

The note is evidence of the debt and states principal, interest, payments, maturity, and default terms. A deed of trust or mortgage is a separate security instrument that makes real property collateral for that debt.

See also

Deed of trustThe three-party security instrument that dominates California lending, allowing a non-judicial trustee's sale.

Test the distinction

A relevant question from Contracts, selected because its facts or explanation use this concept.

Contracts ยท 12%Promissory Notes/Securities

In a promissory note secured by a deed of trust, what is the note and what is the deed of trust?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

FinancingAll eight official DRE financing topics in one California-specific guide, from loan structures and government programs to foreclosure, credit laws, brokerage, and MLO licensing.9%Practice Financing24 questions on this area, every option explained.Practice

Other terms in this area