What obligations does a borrower have until the loan is discharged?

The obligations of a borrower until the loan is discharged include significant responsibilities intended to protect the lender's investment and ensure the property is maintained properly. One of the key obligations is not to sell or gift the property without permission. This requirement exists because the lender has a financial interest in the property as security for the loan. If the borrower were to sell or transfer ownership without the lender's consent, it could jeopardize the lender's ability to reclaim the loan amount if the borrower defaults.

Maintaining the property and investing in property insurance are important responsibilities; however, they are typically seen as implied obligations rather than explicit conditions set by the loan agreement. While these actions can positively influence the property's condition and value, they are often not framed as strict borrower obligations in the same way as the stipulation not to transfer ownership without consent. Thus, the prohibition on selling or gifting the property stands out as a clear and enforceable obligation that is crucial for both the borrower and lender during the life of the loan.