Illinois Real Estate Practice Exam

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What is the purpose of a promissory note in the context of filing a mortgage?

To transfer ownership of the property
To provide evidence of debt
To establish property boundaries
To release existing liens

The correct answer is: To provide evidence of debt

The purpose of a promissory note in the context of filing a mortgage is indeed to provide evidence of debt. This legal document serves as a written promise from the borrower to repay the lender the amount specified, along with any agreed-upon interest, under the terms outlined in the note. Essentially, it details the borrower's obligation to the lender and formalizes the loan agreement. In the context of a mortgage, while the note is a key component of the financing process, it does not transfer ownership of the property. Ownership remains tied to the deed. The promissory note does not establish property boundaries, as that task is associated with surveying and legal descriptions of the land. Lastly, the note does not address the release of existing liens, which would require additional legal actions separate from the note itself. Thus, providing evidence of debt is the primary and correct purpose of a promissory note in this scenario.