Florida Real Estate Practice Exam

In a title theory state, which statement is true?

1. A promissory note creates a lien against the property

2. It's easier for a lender to foreclose on property

3. The lien makes non-judicial foreclosure typical

4. The mortgage creates a lien against the property

The correct answer is: It's easier for a lender to foreclose on property

In a title theory state, the correct statement is that "it's easier for a lender to foreclose on property." This is because in title theory states, the lender holds legal title to the property until the loan is fully paid off. This allows the lender to foreclose on the property without having to go through a court process. Option A is incorrect because a promissory note is a promise to repay the loan, not a lien on the property. Option C is incorrect because non-judicial foreclosure is not solely dependent on the type of state, but also on the terms laid out in the loan agreement. Option D is incorrect because a mortgage is a type of security interest in which the borrower holds legal title to the property, making it more difficult for the lender to foreclose. Therefore, option B is the only correct choice.