Maria purchases a home in Miami and signs a promissory note and mortgage. The lender records the mortgage in the public records. Under Florida law, who holds legal title to the property?
Correct Answer
B) Maria holds legal title, and the lender has a lien against the property
Florida is a lien theory state, meaning the borrower retains legal title to the property while the lender holds a lien as security. Option A describes title theory states where the lender holds title. Option C is incorrect as there is no joint title holding in mortgage transactions. Option D is incorrect as counties do not hold title in trust for mortgage purposes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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