Promissory Note requirements in Georgia
- Must be in writing and signed by the borrower.
- The note must include the principal amount, interest rate, and repayment schedule.
- Georgia does not require witnesses or notarization for a valid promissory note, but they are recommended.
- If the note is secured by real property, it must be recorded with the county clerk.
- The note should clearly identify the lender and borrower.
- Include default terms, such as late fees or acceleration clauses, if desired.
The process in Georgia
- Download a promissory note template or create your own.
- Fill in the names of the borrower and lender, the loan amount, and the interest rate.
- Set a repayment schedule—lump sum, installments, or on-demand.
- Specify what happens if the borrower defaults, like late fees or acceleration.
- Both parties must sign the note. Notarization is optional but strengthens enforceability.
- Keep a copy for your records. If secured by property, file it with the county.
Get your free Georgia promissory note template now and protect your loan.
Create your promissory noteBudgeting for a Promissory Note
Creating a promissory note is usually free if you use a standard template. Notarization costs about $10 to $20 per signature in Georgia. If you record the note with the county, expect a filing fee, typically around $10 to $50. You can promissory note with a state-specific template here.
Before You Begin: Georgia Promissory Note Checklist
Ensure your Georgia promissory note is enforceable and complete before signing. This checklist covers key steps to protect both lender and borrower.
- Gather accurate details: full legal names, addresses, and Social Security numbers (optional but recommended) of all parties, plus the exact loan amount, interest rate, and repayment schedule.
- Decide on secured vs. unsecured: if the loan is secured by collateral (e.g., a car), you must describe the collateral and may need to file a UCC-1 financing statement with the Georgia Superior Court Clerk to perfect your security interest.
- Determine if a notary is needed: while not required for enforceability, notarization is strongly recommended—especially for real estate-secured loans—and is required to record a deed to secure debt.
- Review Georgia usury laws: ensure your interest rate does not exceed the legal maximum (currently 16% per annum for most loans unless a written contract states a higher rate up to 60% for certain loans) to avoid penalties.
- Consider having witnesses sign: although not required for promissory notes, having a witness or notary can strengthen the document's authenticity if a dispute arises.
- Check for prepayment penalties and late fees: Georgia law permits late fees if specified in the note, but ensure they are reasonable to avoid being deemed a penalty.
DIY vs. hiring a lawyer for your Promissory Note
| Option | Cost | Time | Best for |
|---|---|---|---|
| DIY with a template | ~$40 | Minutes | Standard situations |
| State-specific template (recommended) | Low, one-time | ~15 min | Most people |
| Hire an attorney | $200–$1,500+ | Days–weeks | Complex cases |
Most people complete their promissory note online in about 15 minutes with a state-specific template — the same structure attorneys use, without the hourly bill.
FAQs
Does a promissory note need to be notarized in Georgia?
No, Georgia law does not require notarization for a promissory note to be valid. But notarizing it is a good idea because it makes the signature easier to verify in court.
What's the difference between a promissory note and an IOU?
An IOU is just a simple acknowledgment of a debt. A promissory note includes the repayment terms and is a binding contract. It's more formal and legally stronger.
Can I use a promissory note for a personal loan between family members?
Yes, it works for any personal loan agreement. Using a written note helps prevent misunderstandings and proves the loan's terms if there's a dispute.
What happens if the borrower doesn't pay in Georgia?
If the borrower defaults, you can sue them in court. The note serves as evidence. Georgia has a 6-year statute of limitations for written contracts, so act within that time.