Promissory Note requirements in Wisconsin
- Be in writing and signed by the borrower.
- Clearly state the principal amount, interest rate, and repayment schedule.
- Include the lender's name and the borrower's name and address.
- Specify the due date and what happens if the borrower defaults.
- Although Wisconsin law doesn't require a witness or notary for validity, having one strengthens enforceability.
- Consider using a promissory note template tailored to Wisconsin to ensure all necessary terms are included.
The process in Wisconsin
- Download a Wisconsin-specific promissory note template or create your own.
- Fill in the loan amount, interest rate, repayment terms, and any collateral.
- Review the default and late payment clauses to make sure they comply with state rules.
- Both parties must sign the document. If you want extra proof, have a witness or notary sign.
- Give a copy to both the borrower and the lender.
- Keep the original in a safe place. If the loan is secured by real estate, you may file it with the county register of deeds.
Create your Wisconsin promissory note today using our free template and ensure your loan is legally protected.
Create your promissory noteBudgeting for a Promissory Note
Creating a promissory note is free if you do it yourself. If you use an attorney, fees vary. Filing fees for secured notes at the register of deeds depend on the county, but are modest. Notarization costs a small fee, usually under $10.
Before You Begin: Your Wisconsin Promissory Note Checklist
Take a few minutes to gather the right details and understand Wisconsin's rules before you draft your promissory note. This checklist will help you avoid common mistakes.
- Confirm the full legal names and addresses of both the lender and borrower—use the names as they appear on government-issued IDs.
- Decide on the loan amount, interest rate (and whether it’s simple or compound), and repayment schedule (e.g., monthly payments, due dates, final payoff date).
- Check if your interest rate complies with Wisconsin’s usury limits; if unsure, consult a lawyer or lender for current legal rates.
- Have the borrower's collateral information ready if the note is secured—include a clear description of the collateral and any filing requirements (e.g., UCC-1 for personal property).
- Note that Wisconsin does not require a notary for a promissory note to be valid, but having it notarized can strengthen its enforceability—consider doing so.
- For real estate-secured notes, be aware that additional documents like a mortgage or deed of trust are typically required, and those must be recorded with the county register of deeds.
FAQs
Does a Wisconsin promissory note need to be notarized?
No, but notarizing it adds a layer of authenticity and can make it easier to enforce in court.
Can I use a promissory note for a personal loan between family members?
Yes. A personal loan agreement or IOU can be a promissory note, but make sure it's clear and signed.
What happens if the borrower doesn't pay?
You can send a demand letter, and then file a lawsuit to collect. A properly drafted promissory note will help your case.
Are there any special rules for secured promissory notes in Wisconsin?
If the note is secured by real property, you should file it with the register of deeds in the county where the property is located to perfect your interest.