Real estate note is similar to commercial notes in terms of non-payment consequences. If the borrower becomes a defaulter, then the party has the right to keep the property until the debt is cleared.The promissory note is occasionally used to raise funds for the business. It is used as a security purpose and managed by securities laws. All promissory notes constitute three primary parties. These include the drawee, drawer and payee.
Drawer: A drawer is a person who agrees to pay the drawee a certain amount of money on the maturity of the promissory note. He/she is also known as maker.
Drawee: She/He is an individual, in whose favour the note is prepared. In usual cases the drawee is also the payee until and unless the promissory note is transferred specifically in favour of the payee.
Payee: A payee is someone to whom the payment is made.