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Real estate glossaryGeorgia-specific rule

Security deed

A security deed, also called a deed to secure debt, is Georgia's customary instrument for securing a real estate loan.

Exam area: Finance and Closing

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What does “security deed” mean in real estate?

A security deed, also called a deed to secure debt, is Georgia's customary instrument for securing a real estate loan. The borrower conveys legal title to the lender as security while retaining possession and equitable ownership.

How is “security deed” different from the closest wrong answer?

A promissory note is the promise to repay. The security deed ties that debt to the real property and gives the lender the stated remedies after default.

What is the Georgia-specific rule?

O.C.G.A. § 44-14-60 treats a deed to secure debt as a title conveyance until the debt is paid. It is not merely a lien-theory mortgage.

Worked exam example

Scenario

Nia signs one document promising to repay $280,000 and another conveying title as security for that debt. The second document is the security deed.

What is the most common exam trap?

Trap correction

Do not select mortgage or deed of trust merely because a national question bank used that vocabulary. Georgia stems usually expect security deed.

Original exam check

Apply the definition

At a Georgia closing, the buyer signs two loan documents. One promises to repay $280,000. The other conveys legal title to the lender as security for that debt. Which statement labels them correctly?

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Continue with Finance and Closing complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.