What distinguishes a legal mortgage from other types?

A legal mortgage is characterized by the direct transfer of the title of the property from the borrower (mortgagor) to the lender (mortgagee) as security for the loan. This means that the lender has a formal, legally recognized interest in the property, which allows them to enforce their rights in the event of a default by the borrower. This transfer of title is key because it establishes the lender's legal claim over the property, differentiating a legal mortgage from other forms of security arrangements, such as unsecured loans or other collateral agreements.

In contrast, other options detail scenarios that do not apply to a legal mortgage. For instance, while personal property can be used as security in different types of loans, it is not characteristic of a legal mortgage, which typically concerns real estate. The mention of equity or lease agreements also diverges from the fundamental attributes of legal mortgages, where the focus remains on the actual property and its title as collateral for the loan. Thus, the defining feature of a legal mortgage is the transfer of title, ensuring the lender's legal right over the property involved in the transaction.