Real estate notes are frequently referred to as “real estate receivables” and are used when a piece of land or real estate is sold. These legal documents assign buyer rights and record details of the transaction. Common real estate notes include mortgage notes, land contracts, or a contract sell where the buyer makes cash payment directly to the seller.

Real estate receivables are oftentimes used when individuals purchase stocks within a property. Instead of acquiring the entire property, many investors partner with others to afford the purchase. Investors purchase a certain amount of stocks and the money goes to fund a real estate investment trust. REIT’s are companies that own a considerable amount of land or properties such as apartment or business complexes, shopping malls or retail strip malls.