Q: What is a promissory note & what is a life lease what are the responsibilities of the tenant & or the original homeowner
A:
A promissory note is a promise to pay a specific amount of money in a given time usually with interest rate and payment schedule spelled out. It is usually secured by a mortgage or similar ‘security agreement’.
This has nothing to do with life leases which is a way to transfer a portion of the ‘fee simple’ title to someone for a defined period (someone’s lifetime) and then gave the ‘remainder’ go to a different person.
USUALLY the life estate holder must maintain the property, make any existing mortgage payments (if any), pay property taxes, and keep the property adequately insured. Without the consent of the remainderman, the life tenant may not take out a new mortgage or otherwise encumber the property. They may however rent or make improvements to the property. They may not ‘commit waste’ or destroy the property.
If this sounds like mumbo jumbo I would strongly recommend you consult with a local licensed attorney to explain the pluses and minuses of this arrangement.
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