Promissory note in exchange for a property equity

Real Estate 3 views 2 answers
I had a property with my ex- I agreed to give it up in exchange for a promissory not equaling my share of the equity in the property. Should the note then somehow follow the property? In the case of refinance of the property will the bank then accept the fact the note is following the property if they do not accept a 2nd mortgage? It is a commercial property under an LLC in the state of AZ-the promissory note is part of an MSA in California

Attorney Answers

2
Michael Raymond DaymudeLitigation LawyerSherman Oaks, CA ·
Hopefully, you secured your note with a deed of trust. If not, the note is nothing more than a personal obligation of your ex and does not "follow the property." However, your MSA may have terms give you a security interest in the property. If so, and if your wife will not now execute a deed of trust to secure your interest, consult the attorney that handled your family law case for more options. Good luck.
0 upvotes
James Eschen ·
Did your ex sign a deed of trust to secure the note? If not, the note and the property are completely distinct.
0 upvotes

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