Finance
In Georgia, the promissory note in a real estate transaction is:
AThe deed that transfers ownership
BThe borrower's personal promise to repay the debt✓ Correct
CThe title insurance policy
DThe closing disclosure form
Explanation
The promissory note is the borrower's written promise to repay the loan according to its terms. The Security Deed is the collateral instrument; the note is the personal debt obligation.
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Key Terms to Know
Promissory Note
A written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
Disclosure Requirements
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