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Simple English definitions for legal terms
title jurisdiction
Read a random definition: Preparer Taxpayer Identification Number (PTIN)
A quick definition of title jurisdiction:
Title jurisdiction refers to the concept in property law that when a person takes out a mortgage on a property, legal ownership of the property is transferred to the lender until the mortgage is paid off or foreclosed. This is only practiced in a few American states, known as title states or title-theory jurisdictions. In contrast, most states follow the lien theory, where the borrower retains legal ownership of the property and the lender has a lien on it until the mortgage is satisfied.
A more thorough explanation:
Definition: Title jurisdiction refers to the legal concept in property law that a mortgage transfers the legal title of the property to the mortgagee. The mortgagee retains the title until the mortgage has been satisfied or foreclosed. This concept is also known as title theory and is only adopted by a few American states.
Example: In a title jurisdiction state, if a person takes out a mortgage to buy a house, the legal title of the property is transferred to the mortgage lender until the mortgage is paid off. This means that the lender has the right to foreclose on the property if the borrower fails to make payments.
Explanation: This example illustrates how title jurisdiction works in practice. The mortgage lender holds the legal title of the property until the mortgage is satisfied, which gives them the right to foreclose on the property if the borrower defaults on the loan. This concept is different from lien theory, where the borrower retains legal title of the property and the lender only has a lien on the property as security for the loan.