Promissory Note For Late Rental Payment Template for Pakistan

The Promissory Note For Late Rental Payment is a crucial document used in Pakistani property management when tenants fall behind on their rental payments. This instrument, governed by the Negotiable Instruments Act, 1881 and related Pakistani legislation, provides a formal mechanism for documenting and securing overdue rent payments. It is typically employed when standard rent collection methods have been unsuccessful or when parties agree to formalize a payment plan for overdue rent. The document includes specific details about the outstanding amount, payment terms, and consequences of default, making it a valuable tool for landlords seeking to secure their rights while providing tenants with a structured way to settle their obligations. The note must comply with local stamp duty requirements and can be used as evidence in Pakistani courts if enforcement becomes necessary.

1. Date and Place: The date and location where the promissory note is executed (essential for establishing jurisdiction and limitation period)

2. Maker's Details: Full name, address, and identification details of the person making the promise to pay (tenant)

3. Payee's Details: Full name, address, and identification details of the person to whom payment is promised (landlord)

4. Promise to Pay: Clear and unconditional promise to pay, specifying the exact amount in both figures and words

5. Payment Terms: Details of how and when the payment will be made, including installment schedule if applicable

6. Interest Rate: Specified rate of interest, if any, to be charged on the late rental payment

7. Reference to Original Rent: Details of the original rental agreement and the period for which rent is overdue

8. Signatures: Space for signatures of the maker, witness(es), and any guarantor