Massachusetts Real Estate License Practice Test 2026 - Free Real Estate License Practice Questions and Study Guide

The primary purpose of a mortgage covenant is to protect the lender's investment. This is achieved through various provisions that outline the borrower's responsibilities and the conditions under which the lender can enforce their rights. Mortgage covenants typically include agreements on timely payment of principal and interest, maintenance of the property, and insurance requirements. When a borrower deviates from these terms, it can lead to default, allowing the lender to take actions to safeguard their investment, such as initiating foreclosure.

While the other choices touch on relevant aspects of real estate and financing, they do not encompass the primary function of a mortgage covenant as comprehensively. Terms for interest payments are indeed specified in a mortgage, but they are just one part of the broader covenant. Clarifying tenant rights and outlining property usage restrictions are more closely related to lease agreements and zoning laws, rather than the obligations and protections that govern the relationship between a mortgage lender and borrower.