Multistate Bar Examination Practice Question

Which of the following best describes the lien theory of mortgages?

  • The lender automatically assumes possession upon default by the borrower.

  • The borrower forfeits equitable title to the property at the inception of the mortgage.

  • The lender holds legal title to the property until the loan is repaid in full.

  • The borrower retains legal title, and the lender holds a security interest in the property.

Multistate Bar Examination
Real Property
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