What document creates the lender's lien on the property to secure repayment of the loan?

• A. Promissory note
• B. Deed of trust
• C. Affidavit
• D. Mortgage

Answer: (D)

The essential idea is that a loan is backed by a security instrument that attaches the lender’s claim to the real property. The mortgage serves this role by creating a lien on the property that secures the debt. It describes the property and the loan amount, and when recorded in the land records, gives the lender a public, enforceable interest in the property if the borrower defaults, including the right to foreclose.

The promissory note, on the other hand, is the borrower’s personal promise to repay; it establishes the debt but does not by itself encumber the property with a lien. An affidavit is a sworn statement and isn’t used to create a lien. A deed of trust can also secure a loan with a lien in some jurisdictions, but the document that directly creates the lien in this context is the mortgage.