Final answer:
In real estate transactions, a promissory note for earnest money is usually made payable to a title company or an attorney functioning as a neutral third party who handles the funds until the transaction is completed.
Step-by-step explanation:
In real estate transactions, a promissory note for earnest money is typically made payable to a neutral third party, such as a title company or an attorney connected with the real estate transaction. The specific party to whom the promissory note is made payable may vary depending on local regulations and practice, but it is often preferred to be someone who can act as an escrow agent and ensure that the funds are handled properly until the transaction is completed. This neutral third party holds the earnest money in trust until the transaction either closes or is otherwise terminated according to the terms of the real estate contract.
A promissory note for earnest money should be made payable to the title company. This is because the title company is responsible for handling the closing process of a real estate transaction and ensuring that all funds are properly distributed.