Virginia primarily uses which security instrument?
Question & Answer
Review the question and all answer choices
Mortgages only
Deeds of trust
Land contracts
Land contracts are installment sale contracts, not security instruments. They transfer ownership gradually through payments rather than securing a loan with the property as collateral.
Security agreements
Security agreements are used for personal property, not real estate. They're common in commercial financing for equipment or inventory, but not for real estate security.
Why is this correct?
Virginia primarily uses deeds of trust as the security instrument. This creates a three-party relationship with a trustee holding title as security for the lender, allowing for non-judicial foreclosure if needed.
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