Mortgage law
The security deed: specialty of Georgia

Georgia is often stated to be a title theory state, but such is not the case. Note O.C.G.A. §44-14-30, which states clearly that "A mortgage in this state is only security for a debt and passes no title." Also note O.C.G.A. §44-14-31, which states that "No particular form is necessary to constitute a mortgage. However, a mortgage must clearly indicate the creation of a lien and must specify the debt for which it is given and the property upon which it is to take effect." It is clear, then, that mortgages are construed within the Official Georgia Code and by the Courts of the State of Georgia as placing a lien upon a mortgaged property in favor of the mortgagee, while the mortgagor retains both legal and equitable title to that property. It is equally clear, then, that Georgia is, by virtue of the foregoing facts, a lien theory state. Even so, the Georgia Legislature has formally provided for a lender being able to secure its loan by means of having legal title to a collateralized property conveyed to it.
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