Finance
What is the purpose of a mortgage in a real estate transaction?
ATo transfer title from seller to buyer
BTo provide insurance coverage for the lender
CTo pledge real property as collateral for a loan✓ Correct
DTo establish the purchase price of the property
Explanation
A mortgage is a security instrument that pledges real property as collateral for a loan. If the borrower defaults, the lender can foreclose on the property.
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