In a real estate transaction, the individual signing the security instrument (mortgage or Deed of Trust) is known as what?

In a real estate transaction, the individual signing the security instrument, whether it be a mortgage or a Deed of Trust, is referred to as the mortgagor or trustor. This terminology is essential because it designates the party that borrows money from the lender and secures that loan with the property.

The mortgagor or trustor is responsible for repaying the loan according to the terms agreed upon in the mortgage or Deed of Trust. By signing this document, they grant the lender (the beneficiary) a secured interest in the property until the loan is paid in full. This agreement protects the lender's investment by giving them the right to take possession of the property if the borrower defaults.

Understanding these roles is crucial in real estate as it defines the responsibilities and rights of each party involved in the transaction.