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Virginia primarily uses which security instrument?

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Question & Answer

Review the question and all answer choices

A

Mortgages only

B

Deeds of trust

Correct Answer
C

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.

D

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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