North Carolina uses which security instrument for real estate loans?

A security deed (also called a 'deed to secure debt') is the primary security instrument used in Georgia, not North Carolina. While a security deed also transfers legal title to the lender, it is a two-party instrument distinct from the three-party deed of trust, and it is not used in North Carolina real estate transactions.

A mortgage is a two-party security instrument used in 'lien theory' states, where the borrower retains legal title and the lender holds only a lien on the property. North Carolina is not a mortgage state; using a mortgage there would require judicial foreclosure, which is why lenders in NC overwhelmingly prefer the deed of trust's faster non-judicial process.

A land contract (also called a contract for deed or installment sales contract) is not a traditional security instrument for institutional real estate loans — it is a seller-financing arrangement where the seller retains legal title until the buyer completes all installment payments. While land contracts are used in some transactions in North Carolina, they are not the standard security instrument for bank or mortgage company loans.