Final answer:
The most common covenant included in a mortgage is to pay taxes, which ensures that the borrower is responsible for all property taxes, preserving the property's legal standing and protecting the lender's interests.
Step-by-step explanation:
The covenant most often included in a mortgage is C. To pay taxes. This is an essential aspect of mortgage agreements as it ensures that the borrower agrees to pay all taxes associated with the property. Failure to pay property taxes can result in a lien, which would have priority over the mortgage and could lead to foreclosure by the taxing authority.
The covenant of seisin assures that the borrower legally owns the property and has the right to transfer it. The covenant of further assurances means the seller will provide necessary documentation to ensure the property's title if needed. The covenant of quiet enjoyment implies that the property will not be disturbed by claims against its ownership.
However, the covenant to pay taxes is crucial because regardless of who holds the title to the property, the taxes must be paid to avoid legal complications and to maintain the value and legal standing of the property as collateral for the mortgage lender. It protects the lender's interests by ensuring that property taxes, which could take precedence over a mortgage, are paid promptly.