Mortgages &
Promissory Notes
Practice Exam
2026/2027 VERSION
WITH QUALITY
QUESTIONS AND
VERIFIED ANSWERS
WITH RATIONALES
AND PDF DOWNLOAD.
,1. A mortgage primarily serves as:
A. Proof of ownership
B. Security for a loan
C. Property tax record
D. Insurance contract
Answer: B
Rationale: A mortgage secures
repayment of a loan using real property
as collateral.
2. The borrower in a mortgage is called
the:
A. Mortgagee
B. Trustee
C. Mortgagor
,D. Beneficiary
Answer: C
Rationale: The mortgagor is the
borrower who pledges property.
3. The lender in a mortgage is called
the:
A. Mortgagor
B. Mortgagee
C. Grantor
D. Lessee
Answer: B
Rationale: The mortgagee is the lender
who receives the security interest.
, 4. A promissory note is:
A. Title to property
B. A promise to repay a loan
C. A deed transfer
D. A tax document
Answer: B
Rationale: A promissory note is the
borrower’s written promise to repay
debt.
5. Which document creates a lien on
real property?
A. Promissory note
B. Deed
C. Mortgage or deed of trust
Promissory Notes
Practice Exam
2026/2027 VERSION
WITH QUALITY
QUESTIONS AND
VERIFIED ANSWERS
WITH RATIONALES
AND PDF DOWNLOAD.
,1. A mortgage primarily serves as:
A. Proof of ownership
B. Security for a loan
C. Property tax record
D. Insurance contract
Answer: B
Rationale: A mortgage secures
repayment of a loan using real property
as collateral.
2. The borrower in a mortgage is called
the:
A. Mortgagee
B. Trustee
C. Mortgagor
,D. Beneficiary
Answer: C
Rationale: The mortgagor is the
borrower who pledges property.
3. The lender in a mortgage is called
the:
A. Mortgagor
B. Mortgagee
C. Grantor
D. Lessee
Answer: B
Rationale: The mortgagee is the lender
who receives the security interest.
, 4. A promissory note is:
A. Title to property
B. A promise to repay a loan
C. A deed transfer
D. A tax document
Answer: B
Rationale: A promissory note is the
borrower’s written promise to repay
debt.
5. Which document creates a lien on
real property?
A. Promissory note
B. Deed
C. Mortgage or deed of trust
