Question 1

What are the two documents that make up a typical mortgage transaction in Florida?

Accepted Answer

The promissory note (the personal promise to repay the debt) and the mortgage (the security instrument that pledges the real property as collateral).

Question 2

In Florida mortgage law, who is the mortgagor and who is the mortgagee?

Accepted Answer

The mortgagor is the borrower who pledges the property as collateral; the mortgagee is the lender who receives the mortgage as security for the loan.

Question 3

What is the legal theory under which Florida mortgages operate?

Accepted Answer

Florida follows the lien theory, meaning the borrower retains title to the property and the lender holds only a lien as security until the loan is repaid.

Question 4

What document must a lender record to release a mortgage lien after a borrower fully repays the loan in Florida?

Accepted Answer

A satisfaction of mortgage must be recorded in the public records to release the lien and clear the borrower's title.

Question 5

What is the difference between an assumption of a mortgage and purchasing property subject to the mortgage?

Accepted Answer

In an assumption, the buyer becomes personally liable for the debt; purchasing subject to the mortgage means the buyer takes over payments but the original borrower remains personally liable if the buyer defaults.

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