In a title theory state, what happens to the joint tenancy when a mortgage is granted?

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Prepare for the Themis MBE Real Property Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

Multiple Choice

In a title theory state, what happens to the joint tenancy when a mortgage is granted?

Explanation:
In a title theory state, granting a mortgage transfers legal title to the lender to secure the loan, which breaks the unity of title required for a joint tenancy. Because the four unities (time, title, interest, possession) are disrupted, the joint tenancy is severed and the ownership becomes a tenancy in common. The lender holds title to secure the debt, while the remaining co-owners hold their interests as tenants in common.

In a title theory state, granting a mortgage transfers legal title to the lender to secure the loan, which breaks the unity of title required for a joint tenancy. Because the four unities (time, title, interest, possession) are disrupted, the joint tenancy is severed and the ownership becomes a tenancy in common. The lender holds title to secure the debt, while the remaining co-owners hold their interests as tenants in common.

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