Georgia — Financing & Foreclosure — Georgia Real Estate — State Law Practice Test

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

Sample questions

Three questions from the Georgia — Financing & Foreclosure 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 normally sign to give a lender security for a home loan, and what does it do to title?

   • A security deed, which conveys legal title to the lender until the loan is repaid — Correct answer
   • A lien-theory mortgage, leaving title with the borrower and only a lien with the lender
   • A deed of trust held by a neutral trustee for the lender's benefit
   • A promissory note alone, which by itself transfers the property as collateral

   Explanation: Georgia is a title-theory state. The borrower signs a security deed (deed to secure debt), which 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 Financing — security deed / title theory (O.C.G.A. §44-14-60; §44-14-67)

2. Most Georgia security deeds include a 'power of sale' clause. What does that clause allow the lender to do on default?

   • Foreclose non-judicially by advertisement and public sale, without a court action — Correct answer
   • Take possession and rent out the home without notifying the borrower
   • File a lawsuit and obtain a court judgment before any sale can occur
   • Automatically take title back instantly with no advertising or sale at all

   Explanation: A power-of-sale clause lets the lender foreclose NON-judicially — by advertisement and public sale at the courthouse, with no lawsuit or court order required. This is the standard Georgia foreclosure method and is much faster than judicial foreclosure. Power of sale（出售权条款 / poder de venta）: a clause authorizing the lender to sell the property on default without going to court. Source: O.C.G.A. §44-14-162.

   Handbook: Georgia Financing — power-of-sale (non-judicial) foreclosure (O.C.G.A. §44-14-162)

3. Under O.C.G.A. §44-14-162, how must a Georgia power-of-sale foreclosure be advertised before the sale?

   • Once a week for four weeks in the county's legal organ (official newspaper) — Correct answer
   • Once, in any newspaper, at least 24 hours before the sale
   • Once a week for twelve weeks in a statewide newspaper
   • Only by posting a notice on the courthouse door, with no newspaper ad

   Explanation: Georgia law requires the foreclosure sale to be advertised once a week for four weeks in the official newspaper (the 'legal organ') of the county where the land lies. Getting this four-week schedule exactly right is a frequent GA exam point. Legal organ（法定公告报 / órgano legal）: the newspaper designated for a county's official legal notices. Source: O.C.G.A. §44-14-162.

   Handbook: Georgia Financing — foreclosure advertising 4 weeks in legal organ (O.C.G.A. §44-14-162)