How the exam uses security deed
Answer options routinely offer mortgage, deed of trust and security deed together. Only one is the Georgia instrument, and national study material trains the wrong reflex.
This is one of the terms Georgia handles differently from most states. If you prepared with a national question bank, check what it taught you here, because that is exactly where the state supplement takes marks back. The full list of Georgia differences.
What a question on this looks like
Georgia secures real estate loans using a:
Answer: Security deed Georgia is a title theory state and uses a security deed, sometimes called a deed to secure debt. Legal title passes to the lender until the debt is repaid.
Related terms
- Title theory: The doctrine, followed in Georgia, under which legal title to secured property passes to the lender for the life of the loan rather than remaining with the borrower.
Drill this in context at practice by topic, or browse the full glossary.