Mortgage
A security instrument that pledges real property as collateral for a debt. In Texas, lenders use a deed of trust to play this role.
Quick flashcard
What does Mortgage mean on the Texas real estate exam?
Answer: A security instrument that pledges real property as collateral for a debt. In Texas, lenders use a deed of trust to play this role.
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Mortgage definition
A mortgage is an instrument that pledges real property as security for a loan, creating a lien that lets the lender reach the property on default. The mortgage is paired with the promissory note: the note is the promise to pay, and the security instrument secures that promise.
Texas residential lending uses a deed of trust rather than a traditional mortgage. The deed of trust adds a trustee with a power of sale, which allows non-judicial foreclosure. The general term mortgage still appears on the national portion of the exam, so know how it relates to the note and the lien.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
From definition to recall
See this term inside a real exam question.
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Try 5 free questionsThis definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.