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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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.
(37.) See Burkhart, supra note 33, at 322-24 (listing remaining title-theory states).
(167.) See supra note 37 (listing title-theory states).
(145) The holding in Coraccio also seems to contradict Massachusetts's history as a title-theory state. (146)
Massachusetts Is a Title-Theory State, Which Should Preclude Unilateral Mortgages
Massachusetts is a title-theory state, which means that if a joint tenant unilaterally mortgages the joint tenancy property, the property becomes a tenancy in common, because it destroys the unity of title.