A clause in a mortgage loan contract requiring the borrower to purchase homeowner's insurance is an example of a
A)proscriptive covenant.
B)prescriptive covenant.
C)restrictive covenant.
D)constraint-imposed covenant.

Question

Quizplus · Accepted Answer

A restrictive covenant is a type of agreement that limits what the owner of a property can do with it. In this case, the borrower is restricted by the mortgage loan contract to purchase homeowner's insurance.

A Clause in a Mortgage Loan Contract Requiring the Borrower