Jerry wants to purchase a flat. So he borrows $50,000 from XYZ bank. He signs a note for $50,000 and gives the bank a $50,000 mortgage on the flat as security for his repayment of loan. Within a year and a half, Jerry repays the entire loan. After the repayment of the loan, which of the following right does Jerry have against XYZ bank?

Question

Quizplus · Accepted Answer

Jerry has the right of redemption, which allows him to reclaim his property after the loan has been fully repaid. This is because he gave a mortgage on the flat as security for the loan, and once the loan is repaid, he has the right to reclaim his property. The other options are not applicable in this scenario - the right of foreclosure would allow the bank to take possession of the property in case of default on the loan, the right of reimbursement would allow the bank to seek reimbursement of any expenses it incurred, and the right of subrogation would allow the bank to step into Jerry's shoes and take on his rights and obligations.

Jerry Wants to Purchase a Flat