Florida Real Estate Practice Exam

In lien theory states, the mortgage document places a lien on the property. A lien means that the lender has the right to take possession of the property if the borrower fails to make loan payments. A deed, title, and promissory note are all related to property ownership, but they do not necessarily place a lien on the property. A deed transfers ownership of the property, a title is a legal document that proves ownership, and a promissory note is an agreement to repay a loan. These documents do not guarantee that the lender has a claim on the property if the borrower defaults on the loan.