Hans and Mitzi are getting married, and have saved $20,000 during their lengthy courtship. They have their hearts set on a unit for sale at $200,000 and Mitzi's father John is prepared to lend them the balance of $180,000 to help them out, provided all the details of the arrangement are completed professionally and legally.

a) If you were advising John, what legal arrangement would you recommend? Explain why you would make this recommendation

b) Identify the parties to the arrangement according to their legal and commercial descriptions