According to Delaware's theory of title, what is the role of the mortgagee?

In Delaware's theory of title, the mortgagee holds a security interest only. This concept is fundamental in understanding how mortgages operate within the framework of property law. In this context, the mortgagee, which is typically a lender or financial institution, does not have ownership of the property itself; instead, they hold a lien against the property as collateral for the loan extended to the borrower (mortgagor). The security interest allows the mortgagee to enforce their rights, such as foreclosing on the property in the event of default.

This distinction between ownership and security interest is crucial. While the mortgagor retains title and the right to possess and use the property, the mortgagee's primary role is to ensure that they are protected financially through their interest in the property. If the borrower fails to meet their obligations under the mortgage contract, the mortgagee can pursue legal action to recover the loan amount, typically through foreclosure proceedings.

Understanding this role is essential for anyone navigating property law in Delaware, as it shapes the rights and responsibilities of parties involved in real estate transactions.