Rents and profits from property are entitled to be collected until redemption occurs. Which event ends this entitlement?

• A. Redemption
• B. Foreclosure
• C. Sale
• D. Transfer

Answer: (A)

The main idea is that a lender’s right to rents and profits from a mortgaged property is tied to the borrower’s ability to redeem the loan. Rents and profits are part of the mortgage security, intended to protect the lender's interest. This entitlement lasts until the borrower exercises the right of redemption—paying off the debt in full (including costs) and reclaiming full ownership. When redemption occurs, the lien is released and the lender no longer has a claim to the rents and profits.

Foreclosure is the process that can occur if redemption isn’t exercised, and a sale can be the outcome of that foreclosure. Transfer, by itself, does not terminate the entitlement in the moment the borrower redeems. The event that ends the entitlement to rents and profits is redemption.