How is the borrower in a mortgage transaction referred to?

In a mortgage transaction, the borrower is referred to as the mortgagor. This term is specific to the individual or entity that is borrowing funds to purchase real estate and is responsible for repaying that loan. The mortgagor gives the lender (known as the mortgagee) a mortgage on the property, which serves as collateral for the loan.

Understanding this terminology is crucial in real estate transactions, as it defines the roles of the parties involved. The mortgagor is the one who takes on the debt and has the obligation to make payments, while the mortgagee is the lender who provides those funds. Recognizing these roles allows for clarity in legal documents and transactions.

This definition distinguishes the mortgagor from the lender, broker, and mortgagee, ensuring that anyone involved in real estate understands their specific responsibilities and rights within the transaction.