What is a legal document that pledges a property to the lender as security for a debt called?

A legal document that pledges a property to the lender as security for a debt is known as a mortgage. This document outlines the terms of the loan and grants the lender a legal right to the property if the borrower fails to meet the terms of the loan repayment.

When a borrower takes out a loan to purchase real estate, the mortgage secures the lender's investment by giving them rights to the property until the debt is fully satisfied. Important aspects of a mortgage include the agreed interest rate, repayment schedule, and consequences for default. This security interest protects the lender and gives them the ability to foreclose on the property if payments are not made, allowing them to recover the amount loaned.

Other options like a lease relate to rental agreements, a deed of trust involves a third party to hold the title until the debt is paid, and a promissory note is simply a promise to repay the debt but does not provide security for the lender.