Who is referred to as the individual or entity that borrows money to purchase real estate?

Who is referred to as the individual or entity that borrows money to purchase real estate?

• A. Mortgagor
• B. Mortgagor Agent
• C. Lender
• D. Investor

Answer: (A)

The individual or entity that borrows money to purchase real estate is referred to as the mortgagor. This term specifically identifies the borrower in a mortgage agreement—essentially the party that receives the funds required to buy a property and is responsible for repaying that loan to the lender. The mortgagor pledges the property as collateral for the loan, which allows the lender to claim the property if the borrower fails to meet the payment obligations. Understanding this role is crucial in the context of real estate transactions and financing, as it clarifies the responsibilities and rights of the borrower. The other terms listed, such as mortgagor agent, lender, and investor, refer to different roles in the mortgage and real estate processes, making it clear that they do not fulfill the same function as the individual borrowing funds to purchase the property.

The individual or entity that borrows money to purchase real estate is referred to as the mortgagor. This term specifically identifies the borrower in a mortgage agreement—essentially the party that receives the funds required to buy a property and is responsible for repaying that loan to the lender. The mortgagor pledges the property as collateral for the loan, which allows the lender to claim the property if the borrower fails to meet the payment obligations.

Understanding this role is crucial in the context of real estate transactions and financing, as it clarifies the responsibilities and rights of the borrower. The other terms listed, such as mortgagor agent, lender, and investor, refer to different roles in the mortgage and real estate processes, making it clear that they do not fulfill the same function as the individual borrowing funds to purchase the property.