Borrower's covenants & agreements

Question 1

One of the borrower’s covenants and agreements is the promise to ____ according to the terms of note

Answer 1

repay

This refers to the borrower’s obligation to pay back the loan as specified in the loan agreement.

Question 2

Another one of the borrower’s covenants and agreements is the promise to pay property ____ and ____

Answer 2

property taxes and assessments

These payments are necessary to maintain legal ownership and avoid penalties.

Question 3

Another borrower’s covenant and agreement is the promise to pay property ___

Answer 3

insurance

This protects the property against damage and is often required by lenders.

Question 4

Another borrower’s covenant and agreement is to occupy as a principal residence for at least ___ months

Answer 4

12 months

This ensures the borrower is using the property as intended, which can affect loan terms.

Question 5

And finally, the borrower promises to take care of _______ with the covenant of good repair

Answer 5

maintenance

This includes keeping the property in good condition to protect its value.