A mortgage or deed serves as security instrument that creates a lien against what property?

• A. Personal property
• B. Real property
• C. Intellectual property
• D. All assets

Answer: (B)

A mortgage or deed of trust creates a security interest by placing a lien directly on real property—the land and any structures permanently attached to it. This lien gives the lender rights against that specific property, so if the borrower defaults, the lender can pursue foreclosure to recover the debt from the property itself. Real property is the intended collateral because it’s fixed and consistently tied to the loan, unlike personal property (movable items) or intangible assets like intellectual property, which require different security arrangements. A mortgage isn’t typically a blanket claim on all assets; it’s specifically tied to the real estate described in the loan documents.