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Ohio uses which document as the security instrument for real estate loans?

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Question & Answer

Review the question and all answer choices

A

Deed of trust

Deed of trust is incorrect as it's used in trust deed states where a third party (trustee) holds title until the loan is repaid. Ohio does not use this security instrument for real estate loans.

B

Mortgage

Correct Answer
C

Security deed

Security deed is primarily used in Georgia and a few other states, not Ohio. It functions similarly to a mortgage but has different legal terminology and requirements.

D

Land contract

Land contract is a financing agreement where seller retains title until buyer completes payments, not a security instrument used by traditional lenders in Ohio.

Why is this correct?

Ohio is a mortgage state where the mortgage serves as the security instrument, creating a lien on the property rather than transferring title to a trustee. This aligns with Ohio's legal framework and foreclosure procedures specific to mortgage instruments.

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