What is the effect of recording a mortgage against title?

What is the effect of recording a mortgage against title?

• A. It transfers ownership of the property to the lender.
• B. It increases the market value of the property.
• C. Recording a mortgage creates a lien on the property.
• D. It eliminates all existing liens.

Answer: (C)

Recording a mortgage against title creates a lien on the property. A mortgage is a loan secured by the property, so when it’s recorded, the lender has a legal claim against the title that can be enforced if the borrower doesn’t repay. The owner still holds title and can use the property, but the lender can require repayment from the sale proceeds or pursue remedies like foreclosure or a power of sale to recover the debt. This recording also puts the public on notice that the property is encumbered, which matters for future buyers and lenders. The lien does not transfer ownership to the lender, it does not directly change the property's market value, and it does not automatically remove any other existing liens. The lien remains until the loan is paid in full or the lien is released.

Recording a mortgage against title creates a lien on the property. A mortgage is a loan secured by the property, so when it’s recorded, the lender has a legal claim against the title that can be enforced if the borrower doesn’t repay. The owner still holds title and can use the property, but the lender can require repayment from the sale proceeds or pursue remedies like foreclosure or a power of sale to recover the debt. This recording also puts the public on notice that the property is encumbered, which matters for future buyers and lenders. The lien does not transfer ownership to the lender, it does not directly change the property's market value, and it does not automatically remove any other existing liens. The lien remains until the loan is paid in full or the lien is released.