PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Title theory describes a financing system in which the security instrument places legal title with the lender until the secured debt is satisfied, while the borrower keeps equitable ownership and possession.
Finance and Closing
Georgia finance and closing
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Title theory mean?
Title theory describes a financing system in which the security instrument places legal title with the lender until the secured debt is satisfied, while the borrower keeps equitable ownership and possession.
How do you separate the nearest exam answer?
In a lien-theory state, the borrower keeps legal title and the lender holds a lien. Georgia's security-deed system follows the title-theory result.
What changes or stays the same in Georgia?
Georgia is tested as a title-theory state because a security deed passes title to the grantee until cancellation or reconveyance after payment.
A question asks who holds legal title during the life of a Georgia loan secured by a deed to secure debt. The lender is the legal titleholder for security purposes.
Title theory does not mean the lender has ordinary ownership rights to occupy or use the property while the loan is current.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A Georgia homeowner is current on a loan secured by a deed to secure debt. Which statement describes the parties' positions during the loan?
- A
The borrower keeps possession while the lender holds legal title as security
- B
The borrower holds legal title and the lender holds only a recorded lien
- C
The lender may occupy the home at any time because it holds legal title
- D
A neutral trustee holds legal title for both parties until the loan is paid
In a title-theory state like Georgia, the lender holds legal title as security while the borrower keeps possession and equitable ownership. That title does not let the lender move in while the loan is current. The lien-only answer describes a lien-theory state, not Georgia.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Finance and Closing complete lesson
https://www.passgeorgiarealestate.com/blog/georgia-security-deed-vs-mortgage
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Current Georgia security-deed, cancellation, lien, and power-of-sale authority through the state-authorized code portal.
https://www.lexisnexis.com/hottopics/gacode/Default.asp