Illinois Real Estate Practice Exam

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Study for the Illinois Real Estate Exam. Prepare yourself with comprehensive quiz assessments that involve multiple-choice questions, offering hints and insights for each question. Equip yourself for success on your upcoming exam!

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Who is referred to as the Mortgagee in a real estate transaction?

Lender
Mortgagor
Buyer
Trustee

The correct answer is: Lender

In a real estate transaction, the mortgagee is the lender who provides the financing for the purchase of the property. This entity holds the mortgage and has the legal right to foreclose on the property if the borrower (the mortgagor) fails to meet the terms of the loan agreement. The relationship is critical in the context of real estate, as the mortgagee is responsible for ensuring that the funds are lent under specific conditions and securing their interest in the property through the mortgage. Other roles mentioned, such as the mortgagor, refers to the borrower who receives the loan and pledges the property as collateral. The buyer in the transaction may be the mortgagor if they are acquiring the property with the loan, and the trustee may be involved in some mortgage agreements, typically in a deed of trust scenario. However, it is the lender who is designated as the mortgagee in standard loan agreements.