If a property transaction involves a mortgage, who here is identified as the mortgagor?

If a property transaction involves a mortgage, who here is identified as the mortgagor?

• A. The lender
• B. The buyer
• C. The grantor
• D. The broker

Answer: (B)

In a property transaction that involves a mortgage, the mortgagor is the individual or entity that borrows money from a lender to purchase the property. This borrower enters into a mortgage agreement, pledging the property as collateral for the loan. In this context, the buyer is the party seeking financing to complete the transaction, thereby making them the mortgagor. The identification of the buyer as the mortgagor is important because it determines responsibility for the loan repayment and the legal obligations associated with the mortgage. By contrast, the lender is referred to as the mortgagee, which indicates their role in providing the loan and holding the security interest in the property until the debt is fully paid. Understanding these roles is crucial in real estate transactions involving financing, ensuring that all parties understand their rights and responsibilities.

In a property transaction that involves a mortgage, the mortgagor is the individual or entity that borrows money from a lender to purchase the property. This borrower enters into a mortgage agreement, pledging the property as collateral for the loan. In this context, the buyer is the party seeking financing to complete the transaction, thereby making them the mortgagor.

The identification of the buyer as the mortgagor is important because it determines responsibility for the loan repayment and the legal obligations associated with the mortgage. By contrast, the lender is referred to as the mortgagee, which indicates their role in providing the loan and holding the security interest in the property until the debt is fully paid. Understanding these roles is crucial in real estate transactions involving financing, ensuring that all parties understand their rights and responsibilities.