Obligor

An obligor is the party legally bound to meet an obligation owed to another party, the obligee. In real estate finance, the obligor is typically the borrower or guarantor responsible for repaying a loan, performing under a lease, or fulfilling a contract.

Pinning down the obligor is central to assessing credit risk, especially in structured finance and CMBS deals. Lenders weigh the obligor’s financial standing to set loan terms, rates, and any required guarantees. If the obligor fails to perform, that is a default, and it can trigger the obligee’s remedies.