Real Property: Mortgages


Model: C, a creditor, is thinking of lending O $50,000. O offers Blackacre as collateral.

  • How does one create a mortgage?
    • Mortgage: The conveyance of a security interest in land, intended by the parties to be collateral for the repayment of a debt. It’s a union of 2 elements:
      • A debt
      • Voluntary transfer of a security interest in debtor’s land to secure the debt.
        • Debtor = mortgagor
        • Creditor = mortgagee
    • LEGAL MORTGAGE: The mortgage must be in writing to satisfy the Statute of Frauds.
      • Also known as:
        • “A note”
        • “A security interest in land”
        • “The mortgage deed”
        • “A deed of trust”
        • “A sale leaseback”