Massachusetts Real Estate License Practice Test

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Study for the Massachusetts Real Estate License Test. Prepare with multiple choice questions and explanations. Ace your exam with comprehensive practice!

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Practice this question and more.

A mortgage note is primarily a promise related to which of the following?

To transfer ownership of the property
To maintain the property condition
To repay borrowed money
To lease the property after purchase

The correct answer is: To repay borrowed money

A mortgage note is fundamentally a legal document in which the borrower makes a formal promise to repay borrowed money, typically used to finance the purchase of real estate. This document outlines the terms of the loan, including the amount borrowed, the interest rate, and the repayment schedule. The mortgage note serves as evidence of the debt and the borrower's obligation, making it a crucial component of the lending process. The other options mentioned, while relevant to real estate transactions, do not accurately describe the primary function of a mortgage note. For instance, transferring ownership pertains to the deed, which signifies who holds title to the property. Maintaining the property's condition relates to responsibilities typically associated with ownership or tenancy rather than the fundamental purposes of the note. Leasing the property after purchase falls under rental agreements or leases, which are separate from the financial obligations outlined in a mortgage note. Overall, the distinct focus of the mortgage note on repayment of borrowed funds is what sets it apart from other aspects of real estate transactions.