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Texas Real Estate Practice Exam Latest Update And Verified
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Question Number 18
What is a lien theory state in contrast to a title theory state?
A state in which a mortgage retains title to the property when a mortgage lien is created.
A state in which liens are given priority over other encumbrances
A state in which the holder of a mortgage lien receives title to the mortgage and property until the debt is satisfied.
A state in which liens must be recorded to be enforceable.
✔ Correct Answer:
A state in which a mortgage retains title to the property when a mortgage lien is created.
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