title-theory state

title-theory state definition - business

title-theory state

A state in which the buyer of property receives title from the seller and then gives that title to the mortgage holder. The lender returns the title to the buyer when the mortgage is paid. The buyer enjoys use of the property during the term of the mortgage, even though the lender holds the title. Compare lien-theory state.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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