Georgia — Estates, Deeds & Conveyances — Georgia Real Estate — State Law Practice Test

This Georgia Real Estate — State Law Georgia — Estates, Deeds & Conveyances practice set has 14 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Georgia — Estates, Deeds & Conveyances bank with the correct answer and an explanation. The practice quiz above draws 14 questions at random from the same bank.

1. In Georgia, what instrument does a borrower typically give a lender to secure a real estate loan, and what is its key legal effect?

   • A security deed, which conveys legal title to the lender until the debt is repaid — Correct answer
   • A lien-theory mortgage, under which the borrower keeps title and the lender holds only a lien
   • A quitclaim deed, which transfers whatever interest the borrower has with no warranties
   • A land contract, under which the seller retains title until the price is fully paid

   Explanation: Georgia is a title-theory state. A security deed (deed to secure debt) actually conveys legal title to the lender (grantee) until the debt is paid; on payoff title reverts to the borrower (§44-14-67). It is not a lien-theory mortgage. Security deed（担保契据 / escritura de garantía）: a deed that passes legal title to the lender as security for a loan. Source: O.C.G.A. §44-14-60; §44-14-67.

   Handbook: Georgia Estates & Conveyances — security deed / title theory (O.C.G.A. §44-14-60; §44-14-67)

2. Because Georgia uses the security deed as its financing instrument, which statement best describes who holds legal title to the property during the loan term?

   • The lender holds legal title until the loan is paid; the borrower has equitable title and possession — Correct answer
   • The borrower holds full legal title; the lender has only a recorded lien
   • A neutral trustee holds title under a deed of trust until the loan is paid
   • The county holds title in trust until property taxes and the loan are cleared

   Explanation: Under Georgia's title theory, the security deed passes legal title to the lender (grantee) for the duration of the loan; the borrower keeps equitable title and the right of possession, and gets legal title back upon payoff and cancellation (§44-14-67). Title theory（产权论 / teoría del título）: the lender holds legal title until the debt is satisfied. Source: O.C.G.A. §44-14-60; §44-14-67.

   Handbook: Georgia Estates & Conveyances — title theory, lender holds title (O.C.G.A. §44-14-60)

3. Which Georgia deed offers the grantee the greatest protection by warranting title against ALL defects, including those arising before the grantor owned the property?

   • A general warranty deed — Correct answer
   • A limited (special) warranty deed
   • A quitclaim deed
   • An administrator's deed

   Explanation: A general warranty deed contains full covenants and warrants the title against all defects, whenever they arose — even before the grantor's ownership. A limited (special) warranty deed warrants only against defects arising during the grantor's ownership; a quitclaim warrants nothing. General warranty deed（一般保证契据 / escritura de garantía general）: warrants title against all defects past and present. Source: O.C.G.A. §44-5-60s; common-law deed covenants.

   Handbook: Georgia Estates & Conveyances — general warranty deed (O.C.G.A. §44-5-60; deed covenants)