What legal document outlines the terms and conditions of a mortgage?

A mortgage deed or mortgage agreement is the legal document that specifically outlines the terms and conditions of a mortgage between the borrower and the lender. This document provides comprehensive details including the loan amount, interest rate, repayment schedule, and the consequences of default. It serves not just as a legal contract but also as a record of the lender's interest in the property that is being financed.

Understanding the role of this document is crucial in real estate transactions. Because it formalizes the financial agreement, it binds both parties to the terms agreed upon and protects the lender's right to reclaim the property if the borrower fails to adhere to the conditions of repayment.

In contrast, the other options do not fulfill the same function. For instance, a property title indicates ownership but does not detail the terms of financing. A sales contract pertains to the purchase agreement between a buyer and seller of a property and does not specifically address the loan terms. A loan disclosure statement provides essential details about the loan but is generally intended to inform the borrower about costs, terms, and conditions rather than serving as the binding contract regarding the mortgage itself.