What document is typically used to secure a loan for real estate?

A mortgage is the correct document used to secure a loan for real estate. When a borrower takes out a mortgage, they are entering into a legal agreement with a lender that gives the lender the right to take possession of the property if the borrower fails to make the loan payments. This instrument effectively ties the loan to the real property, creating a lien on the property that assures the lender that they have a claim to it until the debt is fully satisfied.

The promissory note is also an important document, as it outlines the terms of the loan and the borrower's promise to repay it, but it does not secure the loan with the property itself. Conversely, a bill of sale pertains to the sale of personal property, not real estate, and a lease relates to the rental of property rather than securing a loan against it. The mortgage thus serves a critical function in real estate transactions by providing the legal framework necessary for lenders to secure their investment in the property.