National Real Estate Practice Exam

In a real estate transaction, who is known as the buyer?

1. Grantee

2. Mortgagor

3. Vendor

4. Optionee

The correct answer is: Grantee

In the context of real estate transactions, the term "buyer" typically refers to the grantee. The grantee is the individual or entity that receives the title to a property from the grantor (the seller). This relationship is essential in the closing process, where the ownership of the real estate is transferred from one party to another. The grantee's role is significant because they are the ones acquiring the property rights and responsibilities. Other roles related to real estate transactions assist in the process but do not define the buyer in the same way. For instance, the mortgagor is usually the borrower who takes out a mortgage loan, often being the same party as the buyer but not necessarily in every situation. The vendor is the seller in this context, thus not defining anyone who is purchasing property. The optionee refers to a party who has the option to purchase property at a later date, but until they actually exercise that option and finalize the transaction, they do not hold the rights associated with being a buyer. Therefore, identifying the buyer as the grantee clarifies the relationship of these roles during the transaction process.