Property Ownership
Under Pennsylvania law, who holds title in a mortgage lien theory state?
AThe lender holds title until the mortgage is paid off
BThe borrower retains title while the lender holds a lien on the property✓ Correct
CThe title company holds title in escrow during the loan
DBoth borrower and lender share title equally
Explanation
Pennsylvania follows the lien theory of mortgages — the borrower retains title to the property while the lender receives only a lien (security interest). This differs from title theory states where the lender holds legal title.
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