In a mortgage transaction, who is referred to as the mortgagor?

In the context of a mortgage transaction, the mortgagor is defined as the borrower. This is the individual or entity that takes out a loan to purchase property and provides the mortgage as security for that loan. By signing the mortgage document, the mortgagor grants the lender a security interest in the property, which means that if the borrower fails to repay the loan as agreed, the lender has the right to foreclose on the property to recover the outstanding amount.

Understanding this relationship is crucial as it establishes the responsibilities and rights of the borrower in the transaction. The borrower must adhere to the terms of the mortgage agreement, including making regular payments, maintaining insurance on the property, and complying with any other conditions set forth by the lender. This role differs from that of the lender, who provides the funds and holds the mortgage as collateral, or the title holder, who may not necessarily be the borrower if the property ownership is different from the mortgage obligations. Similarly, the estate manager would not be involved in the borrowing aspect but rather in managing the physical property.