[TX] How do I create a promissory note if the borrower is about to move?
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So in this case, not having an address does NOT terminate the promissory note. You can list the address section as “TBD” or “To Be Determined,” and then include a clause that says the borrower agrees to provide a current mailing address within, say, 10 days of securing a new place. Just make it clear they have a duty to keep you updated in writing.
Another thing you can do is you can write in that formal notices can be sent via email or another method until a new physical address is provided. Just add a clause saying that digital communication is valid for official notice until they update their physical mailing address.
Even if you don’t want to write in the work address directly, you can mention that the borrower can be reached at their workplace if all other contact fails. You could say something like, “Borrower acknowledges that they may be contacted through known professional channels in the event contact information becomes outdated.”
Also, add a clause that default can result if borrower goes “off-grid.” Basically say that if the borrower fails to update you with a valid address or contact method and goes silent, it can be treated as a material breach or even an event of default. That gives the note some teeth if they try to ghost you later.
Does that help clarify things? I want to make sure I didn’t leave anything out.
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Hello, for ythis promissory note, the borrower is changing residences and does not know his future address yet. How do we get around this?
I understand the borrower's situation. Have you discussed alternative ways of communication with the borrower?
Yes, we can talk on the phone, email, etc, but shouldnt some address be written down?
Are there any specific terms in the promissory note regarding the borrower's address or notification of changes?
No
Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with borrower’s address issue.
No, I am considering asking for their work address, but I would rather not
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Do you know when they intend to move?
Yes, like asap. The money in the promissory note is so they can move, but they dont know where theyre going yet
Got it. What state is this in again?
Texas
Got it. Was there any other facts you'd like to add before I answered your question?
I know the guy professionally and know where he works and people where he works, so I think that could also be another avenue, but not sure
Ok! I've been working on an answer while we've been chatting, so it'll just be a moment.
One moment...
Sure no rush
So in this case, not having an address does NOT terminate the promissory note. You can list the address section as “TBD” or “To Be Determined,” and then include a clause that says the borrower agrees to provide a current mailing address within, say, 10 days of securing a new place. Just make it clear they have a duty to keep you updated in writing.
Another thing you can do is you can write in that formal notices can be sent via email or another method until a new physical address is provided. Just add a clause saying that digital communication is valid for official notice until they update their physical mailing address.
Even if you don’t want to write in the work address directly, you can mention that the borrower can be reached at their workplace if all other contact fails. You could say something like, “Borrower acknowledges that they may be contacted through known professional channels in the event contact information becomes outdated.”
Also, add a clause that default can result if borrower goes “off-grid.” Basically say that if the borrower fails to update you with a valid address or contact method and goes silent, it can be treated as a material breach or even an event of default. That gives the note some teeth if they try to ghost you later.
Does that help clarify things? I want to make sure I didn’t leave anything out.
Yes, so I really only need three clauses here? 1. address tbd & email communication is fine 10 days from new home location. 2. professional channels if contact info becomes outdated. 3. ghost being material breach... do I have to say what makes it a material breach? 2 months of no contact, etc?
Yes that's correct. Those three clauses are totally solid and cover the key issues. You don’t have to get super specific about what exactly counts as a material breach, but adding a timeframe (like “no contact for X days”) gives it some teeth and helps avoid any gray area if you ever need to enforce the note.
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Address TBD & Email Notice Clause
You’d say something like:
“Borrower’s current residential address is to be determined. Borrower agrees to provide Lender with written notice of a valid physical mailing address within ten (10) days of establishing residence. Until such time, Borrower agrees that notices and communications may be sent to the email address provided below and shall be deemed sufficient.” -
Alternate/Professional Contact Clause
Try:
“In the event Borrower’s contact information becomes outdated or Borrower fails to respond to communications, Lender may make reasonable attempts to contact Borrower through known professional or third-party channels for the sole purpose of updating contact information.” -
Ghosting = Material Breach Clause
This one can be short and to the point, for example:
“Failure to provide updated contact information or failure to respond to reasonable attempts to communicate for a period exceeding sixty (60) days shall constitute a material breach of this Agreement, and may accelerate the full amount due under this Note at Lender’s discretion.”
If 60 days feels too long, you can shorten it to 30. Either way, you don’t need to list every possible example of a breach—just flagging the “no contact” scenario is enough here.
Perfect, thank you! Also, is it best to mention form of payment in the terms? Check, venmo, wire transfer, etc? & lastly is there a best way to get the doc signed? Docusign?
Sure thing! Yes a form of payment clause is really smart.
How would tthat sounds? & would multiple avenues of paymentt be possible?
Sure thing! Yes you can just say that the payment terms are check, venmo, wire transfer, or any other way the parties deem appropriate.
Sounds good, and what about best way of getting the doc signed? Is docusign the best route?
Docusign is perfectly fine. Adobe sign or hello sign. No matter.
Thanks
For sure! Were there any details I missed? Were there any concerns you still needed to be addressed?
Not sure. is there anything else you can think of?
Do I need his middle name too or is first and last fine
No problem. His first and last name is good. You already have everything you need to get started.
Great, thank you man!
Sure! I hope I’ve provided the information you were seeking. If you need more help, please let me know so I can continue to assist you.
