Property Before the Classroom: Mortgages, Security Interests in Land, Foreclosure, Priority, Fixtures, Water Rights, Support, and Complete Property Exam Strategy

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EPISODE SUMMARY
A mortgage is a security interest in land that secures repayment of a debt. The mortgagor gives the mortgage; the mortgagee receives it. The mortgage follows the debt and should be discharged when the debt is paid.Mortgage theories vary. Title-theory jurisdictions treat the mortgage as transferring title to the lender. Lien-theory jurisdictions treat it as a lien, with the borrower retaining title until foreclosure. Intermediate jurisdictions may shift title after default. The equity of redemption allows the borrower to redeem before foreclosure. Statutory redemption may allow redemption after foreclosure.Foreclosure sells the property to satisfy the debt. First in time is usually first in right, but recording acts, subordination, purchase-money mortgages, future advances, and refinancing doctrines may affect priority. Senior foreclosure may wipe out junior interests if properly joined; junior foreclosure leaves senior interests intact. Deficiency judgments and surplus proceeds depend on sale price, debt, priority, and statute.Installment land contracts allow buyers to pay over time while sellers retain title. Traditional forfeiture rules were harsh, and modern law often provides mortgage-like protections.Fixtures are personal property that becomes part of real property. Courts consider attachment, adaptation, and intent. Trade fixtures installed by tenants for business purposes are often removable before lease end if removal does not cause substantial damage.Water rights vary. Riparian jurisdictions give watercourse rights to landowners along the water, subject to reasonable use. Prior appropriation jurisdictions prioritize first beneficial use. Groundwater rules vary by jurisdiction. Support rights protect land from collapse caused by neighboring excavation or underground removal.Accession and confusion resolve personal-property disputes involving added value or mixed goods.The complete Property method is classification, source, validity, priority, limits, and remedy. Identify the property, name each interest, determine how it was created, test formal requirements, compare competing claims, analyze use restrictions, and select the proper remedy.