Lien Theory

Definition: Lien theory treats a mortgage as a security interest in property rather than a transfer of the borrower's legal title to the lender.

Example

A Florida owner grants a mortgage lien while retaining ownership, subject to the lender's enforceable security rights.

Keep the distinction clear

Florida section 697.02 states that a mortgage is a specific lien and not a conveyance of legal title or possession. A lender must use lawful remedies after default.

Related terms

Mortgage · Mortgagor · Mortgagee

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: Florida Statutes 697.02: nature of a mortgage

Pronunciation (US): leen THEER-ee (capitals show stress)

Pronunciation reference: Merriam-Webster