Property Ownership
A Minnesota property owner has a mortgage with the lender holding the mortgage as security. Under Minnesota's mortgage theory, the homeowner:
AGives title to the lender until the mortgage is paid
BRetains title to the property while giving the lender a lien✓ Correct
CShares ownership equally with the lender
DCannot sell until the mortgage is paid
Explanation
Minnesota follows the lien theory of mortgages, where the homeowner retains title and the lender receives a lien on the property as security for the loan. This differs from title theory states (where the lender holds title). In Minnesota, the borrower can sell or refinance the property (subject to the mortgage lien) and retains ownership rights.
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