What legal document secures a loan by placing a lien on the property?

A mortgage is a legal document that secures a loan by creating a lien on the property being financed. This means that the lender has a legal claim to the property until the borrower fully repays the loan. If the borrower defaults on the loan, the lender can initiate foreclosure proceedings to recover the loan amount by taking possession of the property.

In contrast, a lease is an agreement granting someone the right to use a property for a specified period in exchange for payment, but it does not create a lien. A deed is a legal document that transfers ownership of real property from one party to another, while a title refers to the legal right to own, use, and sell a property. Neither of these documents serves the purpose of securing a loan like a mortgage does.