In a real estate transaction, who is typically considered the beneficiary of a loan?

In a real estate transaction, the lender is typically considered the beneficiary of a loan. This is because the lender is the party that provides the funds to the borrower (usually the buyer) to facilitate the purchase of the property. The loan represents a legal obligation for the borrower to repay the borrowed amount, plus interest, in accordance with the terms of the loan agreement.

The concept of a "beneficiary" in this context refers to the lender's interest in the repayment of the loan. They have a vested interest in ensuring that the loan is paid back in full, as failure to do so can lead to foreclosure on the property used as collateral for the loan. In this scenario, the lender holds a security interest in the property until the loan is fully repaid, thereby making them the primary beneficiary of the transaction in terms of financial interest.

The buyer, while they benefit from acquiring the property through the loan, is the one who takes on the debt and has to repay the lender. The seller receives payment for the property but is not involved in the loan agreement itself. The appraiser simply assesses the property's value and does not have a financial stake in the transaction. Thus, the lender stands out as the correct answer given their role as the beneficiary in