Definition: A mortgage-law approach in which legal title is held by the lender or a trustee as security, subject to the borrower's rights and satisfaction of the debt.
Example
A study comparison contrasts title-theory security arrangements with Florida's lien-theory treatment of a mortgage.
Keep the distinction clear
Florida treats a mortgage as a lien rather than a conveyance of legal title. Do not apply another state's mortgage theory to a Florida question without checking its context.
Related terms
Lien Theory · Mortgage · Hypothecate
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: Florida Statutes 697.02: nature of a mortgage
Pronunciation (US): TYE-tul THEER-ee (capitals show stress)
Pronunciation reference: Merriam-Webster
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