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Real estate glossaryGeorgia-specific rule

Satisfaction or cancellation of security deed

Satisfaction or cancellation of a Georgia security deed is the formal record that the secured debt has been paid and the security deed has been canceled, which operates to reconvey title as provided by Georgia law.

Exam area: Finance and Closing

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What does “satisfaction or cancellation of security deed” mean in real estate?

Satisfaction or cancellation of a Georgia security deed is the formal record that the secured debt has been paid and the security deed has been canceled, which operates to reconvey title as provided by Georgia law.

How is “satisfaction or cancellation of security deed” different from the closest wrong answer?

Paying the note satisfies the debt. Recording the cancellation clears the public title record of the security instrument.

What is the Georgia-specific rule?

O.C.G.A. § 44-14-67 treats surrender and cancellation after payment as a reconveyance of title to the grantor.

Worked exam example

Scenario

A borrower pays the final loan balance, and the lender submits the proper cancellation so the county record no longer shows the security deed as an outstanding encumbrance.

What is the most common exam trap?

Trap correction

A zero loan balance and a clean public record are related but not identical facts. The recorded cancellation matters for title evidence.

Original exam check

Apply the definition

A homeowner makes the final payment on a loan secured by a Georgia security deed. A title search a month later still shows the security deed as open. What is missing?

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