What is the standard description of a mortgage as a security instrument?

• A. Security instrument that creates a lien
• B. Deed
• C. Lease
• D. Bill of Sale

Answer: (A)

A mortgage is a security instrument that creates a lien on real property to secure the repayment of a loan. The borrower keeps ownership, but the lender has a legal claim on the property and can foreclose if the loan isn’t repaid. This lien is the core idea: it provides security for the debt rather than transferring ownership. In contrast, a deed transfers title to someone else, a lease covers possession and use, and a bill of sale transfers ownership of personal property—none of which describe the lender’s security interest the way a mortgage does.