Escrow & Title
In Georgia, a security deed (also called a deed to secure debt) differs from a mortgage because:
AIt requires the borrower to pay property taxes directly to the lender
BLegal title is transferred to the lender until the debt is repaid, rather than creating a lien✓ Correct
CIt does not require a promissory note
DIt cannot be used for residential transactions
Explanation
Georgia uses a security deed (deed to secure debt) rather than a traditional mortgage. The borrower actually conveys legal title to the lender as security for the debt. Upon repayment, the lender reconveys title back to the borrower.
Related Georgia Escrow & Title Questions
- A 'partition action' in Georgia is a lawsuit that allows:
- In Georgia, a 'judgment lien' attaches to real property owned by the judgment debtor when:
- The 'tacking' doctrine in adverse possession allows a claimant to:
- In Georgia, property taxes become a lien on the property as of:
- In Georgia, an 'abstract of title' is a:
- A Georgia closing attorney's duties to the buyer and seller create:
- A Georgia 'deed in lieu of foreclosure' involves the borrower:
- Which type of deed provides the greatest protection to the buyer?
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