What is the primary purpose of a mortgage note?

• A. To transfer title
• B. To set property taxes
• C. To evidence the borrower's promise to repay the loan
• D. To appoint a property manager

Answer: (C)

The main idea is that a promissory note is the borrower's binding promise to repay the loan. It lays out essential terms such as the amount borrowed, the interest rate, the payment schedule, due dates, and what happens if payments aren’t made. This document creates the debt obligation between borrower and lender and is negotiable, meaning it can be sold or assigned to another lender. It does not transfer ownership of the property (that’s handled by the security instrument, like a mortgage or deed of trust), nor does it set property taxes or appoint a property manager. In Washington practice, the security instrument encumbers the property to secure the loan, while the note itself proves the repayment obligation.