Question

When a couple purchased their new home, they obtained a $255,200 loan from the bank. The bank now has an equitable interest in the property, but the borrowers have full rights of possession and control. This is an example of

Answer 1

This scenario represents homeowners purchasing a home using a bank loan, where the bank has equitable interest and the borrowers have possession and control rights.

Step-by-step explanation:

This scenario is an example of homeowners purchasing a home using a bank loan. In this case, the couple obtained a $255,200 loan from the bank to purchase their new home.

The bank now has an equitable interest in the property, which means they have a legal claim to the property until the loan is fully paid off. However, the borrowers have full rights of possession and control, which means they can live in the house and make decisions about it.

This situation represents a common arrangement in the real estate market, where individuals or couples rely on home loans to finance their home purchase.

The bank holds equitable interest as collateral for the loan, ensuring they have a vested stake in the property until the loan is fully repaid. Meanwhile, the borrowers have the right to live in and manage the property as their own.