Final answer:
The question pertains to real estate law, focusing on tax implications related to taking title in the context of a mortgage. No taxes are payable on either the note or mortgage when title is taken before the mortgage.
Step-by-step explanation:
The question relates to a specific scenario in real estate law, particularly focusing on the tax implications of taking title in relation to the timing of a mortgage. No taxes are payable on either the note or mortgage when title is taken before the mortgage. This means that if title to the property is transferred to the borrower before the mortgage is created, no taxes will be levied on the note or mortgage. This is a common practice in real estate transactions as it can provide certain tax advantages to the parties involved.