BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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general warranty deed
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purchase and sale agreement
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lease
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mortgage
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Detailed explanation-1: -A mortgage is a legal instrument of the common law which is used to create a security interest in real property held by a lender as a security for a debt, usually a mortgage loan.
Detailed explanation-2: -Collateral is an asset pledged by a borrower, to a lender (or a creditor), as security for a loan.
Detailed explanation-3: -A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties. The term is also used to denote the property which constitutes the security.
Detailed explanation-4: -Collateral is an item of value pledged to secure a loan. Collateral reduces the risk for lenders. If a borrower defaults on the loan, the lender can seize the collateral and sell it to recoup its losses. Mortgages and car loans are two types of collateralized loans.
Detailed explanation-5: -The borrower who pledges property as collateral is called the mortgagor. The lender is called the mortgagee.