What term describes the borrower in a mortgage agreement?

In a mortgage agreement, the borrower is referred to as the mortgagor. This term specifically identifies the individual or entity that is borrowing money to purchase real estate and is responsible for repaying the loan. The mortgagor utilizes the property as collateral, giving the lender an interest in the property until the loan is fully paid off.

Understanding the roles is crucial in real estate transactions: the other party in the mortgage agreement is known as the mortgagee, which refers to the lender or financial institution providing the loan. The lender has the right to take possession of the property through foreclosure if the mortgagor fails to meet the repayment terms. The term 'default' pertains to the failure of the borrower to make required payments, which is a critical concept in mortgage agreements, but does not define the borrower themselves. Recognizing the correct terminology ensures clear communication and understanding of roles in real estate finance.