What instrument is given by the purchaser to a seller when part of the purchase price is financed?

A purchase-money mortgage is an instrument provided by the buyer to the seller when part of the purchase price is financed through the seller. This type of mortgage enables the buyer to borrow money from the seller to cover a portion of the price of the property. In this arrangement, the seller retains a security interest in the property until the buyer repays the loan, similar to how a traditional mortgage works.

This means that the seller holds a lien on the property, giving them the right to reclaim it if the buyer defaults on the loan. The purchase-money mortgage typically outlines the terms of the financing, including the interest rate, repayment schedule, and the consequences of default.

Other instruments mentioned, such as a deed of trust, promissory note, and mortgage deed, serve different purposes in the context of real estate financing. A deed of trust is generally used in place of a mortgage in some states and involves a third party to hold the title; a promissory note is a legal document in which the borrower promises to repay the loan but does not itself create a lien; and a mortgage deed is the document that gives the lender a lien on the property. However, in the specific situation of financing part of the purchase price directly from the seller