Harry and Ron are close friends and have signed an Agreement of Purchase and Sale to purchase a residential property for $400,000.00. They intend to complete certain renovation work and resell the property within one year. Harry has saved up $30,000.00 to put towards the purchase and Ron has saved up $20,000.00. Which form of legal co-ownership would be preferable for Harry and Ron? Be sure to explain the applicable legal principles as part of your answer.

2. In order to partially finance the acquisition of the property, Harry and Ron arranged to borrow the sum of $350,000.00 (the "Loan") from Hogwarts Credit Union Limited ("Hogwarts"). Hogwarts requires that the loan agreement be secured through an interest in the property. a. Explain the nature of the legal interest that Hogwarts would acquire as security for the loan and the legal implications.

After reviewing Harry and Ron's credit application, Hogwarts determines that in addition to an interest in land, Harry and Ron's promise to pay is not sufficient to grant the Loan and require an additional guarantee from Ron's wife, Hermione.

b. Explain the nature of Hermione's potential liability as a guarantor. What steps should Hogwarts take to ensure that the guarantee is enforceable. ( Unfortunately, an economic downturn hits and Harry and Ron lose their jobs as a Aurors with the Ministry of Magic and are unable to make payments under the Loan. c. Explain the rights and remedies of Hogwarts as it pertains to their enforcement of their security interest against the lands.