Both a mortgage and the associated mortgage note are classified as:

The correct classification of both a mortgage and the associated mortgage note is that they are considered contracts. A mortgage is a legal agreement in which a borrower gives the lender the right to take possession of the property if the borrower defaults on the loan, while the mortgage note is the borrower's promise to repay the loan under specified terms. Both documents establish the terms and obligations of the borrowing and lending parties, thereby fulfilling the definition of a contract.

In real estate, contracts are essential as they form the foundation of the transactions that take place. They outline the legal responsibilities and rights of the parties involved, ensuring that both sides are clear about what is expected.

Understanding this classification also highlights the significance of these instruments within the context of real estate financing. The contractual nature means they are enforceable by law, providing protections and remedies for both lenders and borrowers.

In contrast, the other classifications such as security instruments, equity instruments, and liabilities do not accurately capture the essence of the mortgage and mortgage note in terms of their foundational role in establishing the legal framework of a loan agreement. This reinforces the understanding that mortgages fundamentally operate through the principles of contract law.