In a traditional real estate transaction, the seller sells the deed to the property in exchange for a full payment.
Many times, this payment to the seller comes from conventional financial institution and must be repaid by the buyer. In a typical real estate transaction like this, you have the ‘deed’ which shows ownership of the property and you have the ‘promissory note’ (also known as mortgage), in which the buyer promises to pay back the bank at an agreed upon interest rate, amortization period, and term.”