Escrow & Title
The Georgia 'Lien Theory' versus 'Title Theory' distinction refers to:
AA. The difference between zoning liens and mortgage liens
BB. Georgia's use of title theory — title passes to the lender (Security Deed) rather than the borrower retaining title with a lien✓ Correct
CC. The priority of tax liens over mortgage liens
DD. Whether liens must be recorded to be valid
Explanation
Georgia is a title theory state — when a borrower executes a Security Deed, legal title passes to the lender as security. In lien theory states, the borrower retains title and the lender holds a lien. This affects foreclosure procedures and title rights.
Related Georgia Escrow & Title Questions
- A satisfaction of mortgage (or discharge) is recorded when:
- A subordination agreement in real estate allows a later mortgage to:
- A warranty deed in Georgia provides the grantee with which covenants?
- In Georgia, a deed must contain a legal description that:
- A judgment lien in Georgia attaches to:
- Title insurance underwriters perform a title search before issuing a policy to:
- A lender's title insurance policy (loan policy) protects:
- When a Georgia borrower pays off their mortgage (security deed), the lender must execute and deliver a:
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