Promissory Note requirements in Pennsylvania
- Must be in writing and signed by the borrower.
- Include the principal amount, interest rate, and repayment schedule.
- Identify the lender and borrower clearly.
- Specify the maturity date or repayment term.
- In Pennsylvania, a witness is not required, but a notary is recommended for added legal weight.
- For loans secured by real estate, the note must be in writing and signed; recording is optional but advisable.
The process in Pennsylvania
- Download a Pennsylvania-specific promissory note template or create your own.
- Fill in the borrower's and lender's full legal names and addresses.
- State the loan amount (principal) and the interest rate. Use a fixed or variable rate, but be specific.
- Define the repayment schedule: installments or lump sum, due dates, and final maturity.
- Include late fees and default terms if any.
- Sign the note. While a notary isn't mandated by state law, getting one signed and notarized helps enforceability.
Download our free Pennsylvania promissory note template and get your loan in writing today.
Create your promissory noteBudgeting for a Promissory Note
There is no state fee to create a promissory note. If you hire a lawyer, expect $200–$500 for a custom note. Notary fees vary by county but are typically $5–$15 per signature.
PA Promissory Note Prep Checklist
Before drafting a Pennsylvania promissory note, gather key details and understand state-specific signing rules to ensure enforceability.
- Confirm all borrower and lender legal names, addresses, and contact info.
- Decide on secured vs. unsecured terms (collateral can affect filing requirements).
- Prepare payment specifics: principal, interest rate (avoid usury over 6% unless exceptions apply), maturity date, and late fees.
- Have two credible witnesses or a notary present for signing—Pennsylvania doesn't require but strongly recommends it for proof in court.
- If secured by real estate, you'll need to record the note and mortgage with the county recorder's office where property is located.
- Keep a copy of all signed pages and any related loan agreements or disclosures for your records.
FAQs
Does a promissory note in Pennsylvania need a witness?
No, Pennsylvania law does not require a witness for a promissory note. However, a notary public is recommended for stronger legal standing in court.
Can I use a promissory note template from online?
Yes, a generic template is fine as long as it includes all necessary terms and follows Pennsylvania contract rules. Make sure it complies with usury laws (interest rate caps).
What is the difference between a promissory note and a loan agreement?
A promissory note is the borrower's promise to pay. A loan agreement is broader and includes terms like collateral, covenants, and default remedies. You can use both together.
How do I enforce a promissory note in Pennsylvania?
If the borrower defaults, you can sue in civil court. A notarized note makes the evidence stronger. For small amounts, you may use magisterial district court.