What is the primary purpose of a mortgage?

The primary purpose of a mortgage is to secure repayment of a loan. In the context of real estate transactions, when an individual borrows money to purchase property, the lender uses the mortgage as a legal instrument that gives them a claim or lien against the property. This means that if the borrower fails to repay the loan, the lender has the right to take possession of the property through foreclosure. The mortgage effectively protects the lender’s investment by ensuring they have a legal recourse to recover their funds.

Other options reflect activities associated with real estate but don't capture the primary purpose of a mortgage. For example, holding title to real property is related to ownership rather than securing a loan. Ensuring that property taxes are paid involves the responsibilities of property ownership and is not directly linked to the function of a mortgage. Facilitating real estate sales pertains to the broader transactions of buying and selling property, which can involve many elements beyond just the loan aspect. Thus, the key function of a mortgage remains its role in securing the lender's financial interest in the property.