How the exam uses title theory
Questions ask who holds title during the loan term. In a lien theory state the answer is the borrower. In Georgia it is the lender.
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
- Security deed: The instrument Georgia uses to secure a real estate loan, sometimes called a deed to secure debt. Legal title passes to the lender until the debt is repaid.
Drill this in context at practice by topic, or browse the full glossary.