title-theory states

title-theory states

Those states in which mortgages are treated as passing legal title to the lender, with the borrower having equitable title. Typically title-theory states employ a deed of trust instrument rather than something called a mortgage.If the borrower pays the debt in full, then the lender reconveys the property to the borrower. Contrast with lien theory states and with hybrid theory states.

References in periodicals archive ?
111) States that take the former view are called title-theory states, while states that adopt the latter view are lien-theory states.
Because a mortgage is understood as a conveyance of a present estate in real property in a title-theory state, it follows that the granting and transfer of mortgages must comply with the formalities of land conveyance.
34) American jurisdictions differ on whether they follow the common law: title-theory states do, whereas lien-theory states pass only a lien to the mortgagee.
145) The holding in Coraccio also seems to contradict Massachusetts's history as a title-theory state.
Massachusetts Is a Title-Theory State, Which Should Preclude Unilateral Mortgages
166) Massachusetts is the only title-theory state that permits unilateral encumbrances on property held as tenants by the entirety.