In title theory, what is given by the mortgagor to the mortgagee?

In title theory, when a mortgage is executed, the mortgagor (the borrower) transfers legal title of the mortgaged property to the mortgagee (the lender) as security for the loan. This transfer means that the mortgagee holds the legal title while the mortgagor retains equitable title and the right to possession of the property.

It's essential to recognize that while the mortgagee holds legal title, the mortgagor continues to benefit from the use and enjoyment of the property, as well as the right to eventually reclaim full ownership once the mortgage debt has been repaid. This distinction establishes a key characteristic of title theory, where the lender has a more significant claim over the property than in lien theory, where the borrower retains legal title until default occurs.

Understanding this relationship under title theory is critical for navigating real property transactions and recognizing the rights and responsibilities associated with both parties involved in a mortgage agreement.