Which party does the term ‘mortgagee’ refer to in real estate transactions?

In real estate transactions, the term ‘mortgagee’ specifically refers to the lender—the financial institution or individual that provides the loan to the borrower for the purpose of purchasing a property. The mortgagee holds the legal interest in the property until the loan is paid off, securing their investment against the real estate asset.

This relationship is foundational in mortgage agreements, as the lender has the right to take possession of the property through foreclosure if the borrower fails to fulfill the repayment terms. Understanding the role of the mortgagee is essential for comprehending how financing works in real estate transactions, as it is the lender that enables the buyer to acquire the property through borrowed funds.