What type of asset is recorded when receiving a mortgage?

When receiving a mortgage, the type of asset recorded is typically a building. This is because mortgages are often associated with real estate purchases, where a building is being financed. The mortgage represents a liability for the borrower, but it also reflects a corresponding asset, which is the property and any improvements made to it, like the building.

Land can also be an asset connected to a mortgage; however, in practice, when a mortgage transaction is recorded, the focus is often on the building itself, as it is the structure that will generate economic benefits for the owner. Equipment and inventory do not typically involve mortgages in the same way that real estate does, as they are usually financed through different means or loans specific to those asset types. Thus, in a mortgage scenario, the building holds the most relevance as the asset being recorded.