What is required to be established with a mortgage on real property?

To establish a mortgage on real property, it is essential to create a legal lien on the property. A mortgage functions as a security interest, meaning that it provides the lender a claim against the property in the event the borrower defaults on the loan. This legal lien allows the lender to pursue the property through foreclosure if necessary, to recoup the amounts owed.

The other options do not fulfill the requirements for establishing a mortgage. For example, while the seller's ownership status may impact the sale, it is not a requirement for establishing a mortgage. Similarly, a notarized statement from the buyer is not a necessary component for creating a mortgage. An insurance policy, while often involved in property transactions to protect both parties, does not contribute to the establishment of the mortgage itself as a legal claim on the property. Therefore, the creation of a legal lien is the foundational requirement when securing a mortgage.