Florida Real Estate Practice Exam

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Prepare for your Florida Real Estate Exam with a comprehensive quiz featuring multiple-choice questions, hints, and detailed explanations. Gain the confidence you need to succeed in obtaining your real estate license!

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In which theory does the borrower hold the title while the property is mortgaged?

Lien Theory
Title Theory
Both Lien and Title Theories
Neither Lien nor Title Theory

The correct answer is: Lien Theory

Lien Theory is the correct answer because it states that the borrower holds the title while the property is mortgaged, but the lender has the right to take possession of the property if the borrower defaults on their loan payments. In contrast, Title Theory states that the lender holds the title to the property until the borrower pays off the mortgage, giving them more control over the property. Both Lien and Title Theories are incorrect because they do not accurately reflect the concept of the borrower holding the title while the property is mortgaged. Neither Lien nor Title Theory is also incorrect because they do not describe any type of theory related to property ownership during a mortgage.