Florida Real Estate Practice Exam

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Test your proficiency for the Florida real estate exam with our comprehensive quiz. Gain confidence and ace your test with our expertly crafted questions.

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Who holds the title in a lien theory state during the mortgage?

The borrower
The lender
Both the borrower and lender
Neither the borrower nor lender

The correct answer is: The borrower

In a lien theory state, the borrower holds the title to the property while the lender holds a lien as security. This means that the borrower has legal ownership of the property during the mortgage, but the lender has the right to foreclose on the property if the borrower defaults on their loan payments. Option B is incorrect because the lender does not hold the title in this scenario. Option C is incorrect because while both the borrower and lender have a stake in the property, only the borrower holds the title. Option D is incorrect because even though the lender has a security interest, the borrower is still the legal owner.