Final answer:
A couple who purchases a home will have legal rights to the property, while their mortgage lender will have equitable rights. Equitable rights allow the lender to enforce foreclosure proceedings in case of mortgage default.
Step-by-step explanation:
When a couple purchases a home, they will retain legal rights to the property, which means they have the right to use and possess the home. However, the couple typically takes out a mortgage loan to finance the purchase, and the mortgage lender will have equitable rights to the property. Equitable rights give the lender the right to use foreclosure proceedings to recover the property if the couple fails to make their mortgage payments.
Equitable rights are based on the principles of equitable mortgage, which allows the lender to take legal action to protect their financial interest in the property. This is different from legal rights, which are typically determined by property laws and ownership documents.