Posts: 17,354
Threads: 3,275
Joined: Mar 2025
Just found out from a relative that a legit hand-written letter of promise to pay is not legally valid in the court of law
miley-shocked003: She is now out of $25K. I spoke to a coworker, a certified notary, who said for any personal loan doc to be considered legal in the eye of the law, the doc must be notarized. I am about to make a personal loan of $500 to a relative. What do you think? I know. I know. The first rule of loaning out money to family and friends is "don't do it!". There are a few exceptions, no?
Posts: 18,004
Threads: 637
Joined: May 2025
Reputation:
1
Kap,
Is the relative who told you this an attorney? I ask because something about that statement doesn't sound right. I wouldn't accept that answer from a notary. They aren't lawyers, though a lawyer can be a notary. 'course, the laws may be different from state to state, too.
Robert
Posts: 13,422
Threads: 604
Joined: May 2025
Reputation:
0
She is out $25k because someone is a douchebag. Not because of what is considered legal or not.
Posts: 57,785
Threads: 5,857
Joined: May 2025
Reputation:
3
Not a lawyer, nor do I play one on TV. But notarizing a loan is a small price to pay (usually free if you go to your bank) when significant funds trade hands. It's all about trust and the possibility of trust being broken.
Any document can be falsified. Notarization is supposed to 'validate it'. FWIW... I've never had a company notarize a loan agreement when I signed it. Maybe that's just Ohio.
The other rule is as follows:
NEVER loan money to family or friends that you HAVE to get back. Be prepared to write it off as a loss or a gift. :oldfogey:
Posts: 15,842
Threads: 95
Joined: May 2025
First, it depends on which state you are in and secondly in others what the amount of the loan was. But finally, a notary is not a lawyer. I suspect the handwritten document could be introduced as proof of a loan being made. The lack of notarization just might require additional work and verification before a court would accept the claim.
Think of it another way, a check is not notarized. But absent it being contested on grounds of forgery or coercion, just a signature is all that is needed to establish that the recipient is owed money by the check writer.
Posts: 19,359
Threads: 1,726
Joined: May 2025
Reputation:
0
I always consider it a gift. If they pay it back - partial or in full- it's a bonus.
Posts: 17,354
Threads: 3,275
Joined: Mar 2025
Relative and I are both in CA. The judge dismissed the hand-written promise to pay letter even though the borrower's signature was on it. He denied outright he ever signed it. I know the loaner and the borrower very well so I can say with utmost certainty that the latter is a total jackass!
Posts: 24,633
Threads: 1,093
Joined: May 2025
If I loaned someone $25K, and they chose not to pay it back (notice I said CHOSE not to.. not something prevented them)...
Gee it'd be too bad about that house fire they had, huh? Good thing no one was home...
Posts: 42,600
Threads: 545
Joined: Nov 2023
Reputation:
0
In Washington State, verbal agreements up to $500 are legally binding. You just need to convince the judge there was a verbal agreement. I'd say a signed and dated note would make that a slam dunk win. I had an ATM receipt for a $300 withdrawal 10 minutes before the contested agreement happened. The judge believed me because of that.
Also, if you have a written agreement signed and dated , and the dollar amount is at or below the financial cap limit for your local small claims court, that would likely work to easily prove your point, especially if the deadbeat defendant doesn't show up. King County, WA state small claims court is 5 grand. Oh, and the defendant, if guilty, pays your court costs and any verifiable expenses related to the claim.
