William buys a $500, 000 house from Keith Geller through a realtor.He makes a down payment of $200, 000.He borrows the rest from Smith and Sons, a lending firm, and places his new house as collateral for the loan.Which of the following is the debtor in this case?
A)William
B)Keith Geller
C)Smith and Sons
D)the realtor

Question

Quizplus · Accepted Answer

William is the debtor in this case as he is the one who borrowed money from Smith and Sons and placed his house as collateral for the loan. Keith Geller is the seller of the house and not involved in the lending transaction, while the realtor acted as an intermediary but is not a debtor. Smith and Sons is the lender in this case and the creditor, not the debtor.

William Buys a $500, 000 House from Keith Geller Through