What is the ‘OR’ and ‘EE’ Rule?


what is the OR and EE rule

In real estate, you will come across many titles that end in either ‘OR’ or ‘EE’.

For example, a mortgagor and lessor and mortgagee and lessee.

These titles are used to refer to parties in an agreement. At first, these names can be confusing, but it is pretty simple in actuality. The title ending in ‘or’ is the giver in an arrangement, while the title ending in ‘ee’ is the receiver.

Here are some more examples:

  • Offeror and Offeree
  • Trustor and Trustee
  • Vendor and Vendee
  • Grantor and Grantee
  • Optionor and Optionee

A party who is selling, offering or conveying would fall under an ‘or’ title.

A purchasing or receiving party would fall under the ‘ee’ title.

Knowing which party is which becomes simple as long as you know who is the giver and who is the receiver.

Mortgagor and Mortgagee are terms that are often confused because many think that it has to do with who is giving and receiving a loan. But that’s not the case. Remember, a mortgage isn’t about money, it’s about giving security for a loan as well as a promise to pay back a loan. So, therefore, a Mortgagor is the person who is promising to pay back a loan and the Mortgagee is the party who is receiving that promise.

Before taking your exam, is can be helpful to make some simple flash cards so that you are comfortable with all the ‘or’ and ‘ee’ terms.

If you want to see some examples of questions that will be on the actual real estate exam, check out our free real estate practice exam. We have been named as the best real estate exam practice for 7 years in a row!

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