Finance

In Wyoming, hypothecation in real estate finance means:

AThe borrower transfers title to the lender as security
BThe borrower pledges real property as collateral for a loan without giving up possession✓ Correct
CThe lender assumes the property's debt
DBoth parties share in the property's profits

Explanation

Hypothecation is the pledging of property as collateral for a debt without transferring possession or title. In a mortgage or deed of trust, the borrower hypothecates the real property—they keep possession and use of the property while the lender holds the security interest.

Related Wyoming Finance Questions

Practice More Wyoming Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Wyoming Quiz →