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. Who is the debtor in this case?
A) William
B) Keith Geller
C) Smith and Sons
D) the realtor

Question

Quizplus · Accepted Answer

The debtor is the one who borrows the money and is responsible for paying it back. In this case, William is the one who borrows the money from Smith and Sons, so he is the debtor. Keith Geller is the seller, not the borrower. Smith and Sons are the lender and are lending the money, not borrowing it. The realtor is simply the intermediary between the buyer and the seller and is not involved in the lending or borrowing process.

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