Sarah is purchasing a home in Tulsa, Oklahoma. At closing, her lender requires her to sign the loan security document. Which instrument will Sarah most likely sign to give the lender a security interest in the property under Oklahoma law?
Correct Answer
A) A mortgage granting the lender a lien on the property
Oklahoma is a lien-theory state. Under the Oklahoma Trust Deed and Mortgage Act (Title 46 O.S.), a mortgage is the standard instrument by which a borrower grants the lender a lien on real property as security for a loan. Sarah retains title to the property; the lender only holds a lien interest.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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