If more than one person enters into a mortgage agreement together, their liability is described as

• A. Collective liability
• B. Tenants in common
• C. Single and joint
• D. Joint and several

Answer: (D)

When several people sign a mortgage, the obligation is joint and several liability. This means each borrower is personally liable for the entire loan amount, not just a portion. The lender can pursue the full debt from any one borrower, all of them collectively, or any combination. If one borrower cannot pay, the others must cover the shortfall, and they can seek reimbursement from the nonpaying party. This arrangement protects the lender by ensuring the loan will be repaid even if one borrower defaults or leaves, and it gives the lender flexibility in collecting.

Terms like tenants in common relate to how the property itself is owned, not how the loan obligation is shared, so they don’t describe liability for the mortgage. The phrase “collective liability” isn’t the standard term used in this context, and “single and joint” isn’t a recognized description for mortgage obligations.