You would be foolish to accept an IOU for 100,000 as consideration for a house. Property is bought and sold after legal title is established and transferred under conveyancy laws. The contract is written up by a solicitor and signed by both parties, being witnessed by independent witnesses.

Share transactions etc. are first done by word of mouth then backed up by a contract note. The Tems and conditions have already been agreed and signed by the participants.

A word of mouth contract is legally binding but should be backed up by a written contract. An IOU is a very basic proof of debt but would it stand up in court on its own merits?

I know it means "I owe you" but what does it exactly mean in financial situation?. I read it in a book and goes like this : .....I sell the house for 100,000 IOU . how is this work ? is it mean you dont go through the bank ?