Finance & Mortgages – NY Real Estate Salesperson Exam

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A mortgage. In New York, the borrower (mortgagor) pledges the property to the lender (mortgagee) as collateral, while retaining title to the property.

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The mortgagor is the borrower who pledges the property as collateral; the mortgagee is the lender who receives the mortgage as security for the loan.

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A promissory note is the borrower's written promise to repay the loan, specifying the amount, interest rate, and repayment terms. It is the primary evidence of the debt.

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Equity is the difference between the property's current market value and the total amount of liens (debts) owed against it. It represents the owner's financial interest in the property.

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A due-on-sale clause requires the full loan balance to be paid immediately if the property is sold or transferred. It prevents a buyer from assuming the existing mortgage without lender approval.