Which type of legal document is commonly utilized to clarify the relationship between a borrower and a lender?

The mortgage is the legal document specifically designed to establish and clarify the relationship between a borrower and a lender when financing the purchase of real estate. It outlines the terms of the loan, including the amount borrowed, interest rate, and repayment schedule, while also granting the lender a security interest in the property. This means that if the borrower fails to meet the repayment terms, the lender has the right to foreclose on the property to recover its investment.

In contrast, a deed of conveyance primarily transfers ownership of property from one party to another, rather than defining the dynamics of a borrower-lender relationship. A title report is an assessment that provides information about the legal status of the property, such as ownership history and any liens, but does not define financial terms. A purchase agreement serves as a contract for the sale of real estate between the buyer and the seller, but it does not pertain to the specifics of borrowing and lending financing relationships. Thus, the mortgage is the correct choice as it directly addresses the specific relationship and obligations of the involved parties in a lending scenario.