Property Ownership
Rhode Island is a title theory state, which means:
AThe borrower holds title and the lender has only a lien
BThe lender holds legal title until the mortgage is fully paid off✓ Correct
CA trustee holds title for the benefit of the lender
DThe state holds title to all properties with outstanding mortgages
Explanation
Rhode Island is historically a title theory state, where the lender holds legal title to the mortgaged property until the loan is paid in full. In practice, many states have evolved toward lien theory in their judicial interpretations.
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