[bsnyder]

I am loaning money to a friend and having him sign a loan agreement. Do I need to have a witness also sign the agreement?

[Hunt Law Firm]

There is no requirement that a guaranty be witnessed. However, it is good practice to have two witnesses and a notary. One day the person making the loan and/or the person borrowing the money may not be around, or the person borrowing the money could take the position that the signature on the document is not his. If the document is witnessed and notarized, independent third parties will be able to verify and authenticate the document. Additionally, I would highly recommend that consult with an attorney regarding your loan to make sure that the promissory note is drafted properly and all taxes have been paid.
I have been involved with many cases where people attempted to save a few dollars by preparing their own loan documents and ended up costing themselves thousands of dollars in unnecessary attorney’s fees due to ambiguities in the document.