Metro Brokers Practice Test 2026 – 400 Free Practice Questions to Pass the Exam

The covenant that a borrower should adhere to in order to ensure that property taxes are paid is the Covenant to Pay Taxes. This specific covenant is a commitment made by the borrower in a loan agreement or mortgage to pay all property taxes that are assessed against the property.

By adhering to this covenant, the borrower ensures that property taxes are kept current, which is essential for maintaining ownership rights and preventing tax liens from being placed on the property. Defaulting on this covenant could lead to significant financial consequences and affect the lender's ability to recoup their investment in the property.

In the context of real estate financing, other covenants may focus on different responsibilities, such as maintaining the property or fulfilling financial obligations, but the Covenant to Pay Taxes directly addresses the requirement to manage and pay property taxes appropriately. This helps protect both the property itself and the lender's investment in the property by ensuring that all tax obligations are met.