A(n)________ is an instrument that evidences a borrower's debt to the lender for a real property.

Question

Quizplus · Accepted Answer

A note is a written promise to pay a certain amount of money, typically with interest, by a specific date. In the context of real estate, a note would be used to evidence a borrower's obligation to repay a loan for a property.

B) Consignment: A consignment involves delivering goods to a buyer, who will sell them on the consignor's behalf for a share of the profits. This is not relevant to evidencing a borrower's debt for a real property.

C) Accommodation: An accommodation involves one party providing a favor or benefit to another without receiving any compensation or benefit in return. This has no relevance to real estate debt.

D) Deed of trust: Although a deed of trust is a type of real estate document, it is not used to evidence a borrower's debt. Instead, a deed of trust is used to secure a debt by transferring legal ownership of the property to a trustee, who holds it on behalf of the lender until the debt is repaid.

A(n)________ Is an Instrument That Evidences a Borrower's Debt to the Lender