What does the covenant against removal prohibit in a mortgage agreement?

• A. Allows the mortgagor to remove personal property without consent
• B. Prohibits the mortgagor from removing any property covered by the mortgage
• C. Requires the borrower to remove exterior improvements within 30 days
• D. Allows the lender to remove property from the mortgaged premises

Answer: (B)

The covenant against removal is about protecting the lender’s security by keeping the collateral in place. It forbids the mortgagor from taking away any property that is pledged as part of the loan, without consent. This ensures the lender can rely on those assets to secure repayment if something goes wrong. It doesn’t govern removing assets not pledged, it doesn’t require removing exterior improvements, and it doesn’t authorize the lender to remove property—the restriction is on the borrower’s ability to remove covered property.