In mortgage transactions, what do the terms 'mortgagee' and 'mortgagor' refer to respectively?

In mortgage transactions, the term 'mortgagee' specifically refers to the lender, the entity that provides the funds for the borrower to purchase the property. This role entails holding the security interest in the property until the loan is repaid, and it usually includes banks or financial institutions involved in the lending process.

On the other hand, 'mortgagor' refers to the borrower, the individual or entity that takes out the loan to buy the property. The mortgagor agrees to repay the loan, including interest, and, in return, has the right to use and occupy the property as long as the terms of the mortgage are being met.

Understanding these definitions is crucial in real estate transactions because it highlights the rights and responsibilities of each party involved. The clear distinction between lender and borrower facilitates the transaction process, ensuring both parties are aware of their roles and obligations throughout the life of the mortgage.