What is a requirement for a valid mortgage contract in Rhode Island?

For a mortgage contract to be valid in Rhode Island, it is essential that there is a written agreement that is signed by the borrower and properly recorded. This requirement serves several purposes. Firstly, the written document provides clear evidence of the terms and conditions agreed upon by the parties involved, minimizing disputes over what was agreed to. Secondly, recording the mortgage with the appropriate local government office serves to provide public notice that the mortgage exists and ensures that the lender's interest in the property is protected against claims from third parties.

Verbal agreements, while they may indicate intent, lack the legal enforceability and clarity that a written and recorded document provides. Notarization also does not substitute for the necessity of recording; without proper recording, the mortgage may not provide the necessary legal protections. Additionally, having a lease agreement alongside a mortgage is not a requirement for a valid mortgage contract. The correct option encompasses all necessary legal elements to make the mortgage effective and enforceable under Rhode Island law.