What does the term "mortgage" refer to in a legal transaction?

The term "mortgage" refers specifically to a loan that is secured by real property. This means that when a borrower takes out a mortgage, they are borrowing money with the agreement that their property will serve as collateral. If the borrower fails to repay the loan, the lender has the right to take possession of the property through a legal process known as foreclosure. Mortgages are common in real estate transactions, facilitating the purchase of homes and other real estate by allowing buyers to finance their purchases over time.

Other terms in the options presented refer to different legal concepts. A lease agreement involves the rental of property, an employment contract pertains to the terms and conditions of a worker's employment, and a form of insurance offers financial protection against certain risks. Each of these concepts operates within distinct legal frameworks and serves different purposes compared to a mortgage.