What does a borrower pledge when signing a deed?

When a borrower signs a deed, they are pledging their ownership rights to the property. The deed serves as a legal document that transfers the title of the property from one party to another. By signing it, the borrower confirms that they own the property and that they are granting an interest in it, which acts as collateral for the loan. This signifies their commitment to upholding the terms of the loan while also establishing the lender’s legal rights to the property in the event of default.

Ownership rights are crucial in the context of mortgage agreements because they define who has authority over the property and who is responsible for adhering to financial obligations associated with it. If a borrower fails to make mortgage payments, the lender has the right to foreclose on the property, relying on the ownership rights conveyed through the deed for recourse.