Which instrument creates a mortgage under property law?

• A. A Note
• B. A Mortgage Deed
• C. A Writ of Attachment
• D. A Satisfaction of Mortgage

Answer: (B)

A mortgage is a security interest in real property given by the borrower to the lender to secure repayment of a loan. The instrument that creates that lien on the property is the mortgage instrument itself, often called a mortgage deed or security deed depending on the jurisdiction. The promissory note accompanies the mortgage and evidences the debt, but it is the mortgage instrument that actually creates the encumbrance on the land. A writ of attachment is a court order to seize property to secure a claim, not a mortgage. A satisfaction of mortgage is the document that shows the loan has been paid and that the lien is released. So, the instrument that creates the mortgage is the mortgage deed.