Finance
A Maine buyer is purchasing a property using seller financing (a purchase money mortgage). Which document pledges the property as collateral for the seller's loan?
AThe promissory note
BThe mortgage✓ Correct
CThe warranty deed
DThe purchase and sale agreement
Explanation
The mortgage (not the promissory note) is the security instrument that pledges the real property as collateral for the loan. The promissory note is the personal promise to repay; the mortgage secures that promise with the property.
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