Property Ownership

In Kentucky, when a property owner borrows money and pledges their property as collateral without transferring possession or title, this creates a:

ALien on the property✓ Correct
BFee simple estate in favor of the lender
CTenancy in common with the lender
DLicense for the lender to use the property

Explanation

Pledging real property as collateral for a loan creates a mortgage lien against the property. The borrower retains possession and title; the lender has a security interest (lien) but not ownership.

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