One state is a lien theory state. a buyer purchases property from a seller and gives him a mortgage as part of the purchase price. therefore, the buyer is the borrower, and the seller is the lender. which of these statements is false?
a. the buyer retains equitable title to the property.
b. if the buyer defaults on the loan, the seller must undergo a formal foreclosure proceeding to recover the security.
c. the buyer has given legal title to the seller.
d. the seller has only a lien interest in the property.

c.

Explanation:

Based on the information provided within the question the only statement that is false is that the buyer has given legal title to the seller. This is not the case since the state is a lien theory state. This means that the buyer becomes a lien on the property while he is making the mortgage payments on the house and holds the deed but the title is held by the property owner. When all the payments are made then the buyer becomes the new owner and is no longer the lien.

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