Florida Real Estate Practice Exam

What identifies Florida in terms of property theory?

1. Lien Theory State

2. Title Theory State

3. Both Lien and Title Theory

4. Neither Lien nor Title Theory

The correct answer is: Lien Theory State

Florida is known as a Lien Theory State when it comes to property theory, meaning that mortgages on properties are viewed as liens against the property. This means that the borrower retains ownership of the property and the lender has a security interest in it. This is in contrast to a Title Theory State, where the lender holds the title to the property until the mortgage is fully paid off. Florida is not considered a Title Theory State, as the borrower maintains the title to the property in a mortgage transaction. Additionally, Florida cannot be categorized as both Lien and Title Theory, as these are two opposing theories of property law. Neither can it be categorized as neither Lien nor Title Theory, as those are the only two options for property theory classification.