Grantor Vs. Grantee: What Are They And How Are They Different?
UPDATED: Apr 9, 2024
Real estate is full of many legal terms that can range from easily understood to complex. Understanding terms related to an ownership rights transaction is crucial. Before taking part in such a transaction, many people may have never heard the term “grantor versus grantee.”
Who Are The Grantor And Grantee?
A grantor is a person or entity who transfers ownership rights of a property or asset to another person or entity. A grantee is a person or entity who receives the transfer of that property. The grantor and grantee are bound together through a contract (or legal document) that determines the terms and conditions of the transfer.
The Grantor
A grantor is the seller of the property. The grantor is a person or entity who transfers ownership rights to someone else.
The Grantee
A grantee, also known as the grantee beneficiary, is the buyer of the property. The grantee is a person or entity who receives the property transfer.
Why Property Deed, Title And Deed Of Trust Matter To The Grantor And Grantee
The three critical documents for a successful real estate transaction are the property deed, the property title and the deed of trust.
A property deed is an official written document declaring a person’s legal ownership of a property, while a property title refers to the concept of ownership rights. A deed of trust is an agreement between a lender and a borrower to give the property to a neutral third party who will serve as a trustee, holding the property until the borrower pays off the debt.
To ensure a buyer is getting exactly what they intend, title searches are performed prior to closing. The title company traces deeds back through the history of recorded property ownership to establish a chain of title. This should determine whether the current owner owns the property free and clear of claims and encumbrances. Title insurance protects home buyers in case something goes undiscovered.
Legal Documents: How They Bind The Grantor And Grantee
A number of different deeds and legal documents bind the grantor and grantee during a real estate transaction. Understanding the details of a deed can make a big difference in finalizing the transfer of the property.
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Types of Deeds |
Purpose of the Deed |
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General Warranty Deed |
A general warranty deed ensures that the grantor has the right to sell the property, and it also ensures that the title doesn’t have liens or anything else that could prevent the grantor from selling. This protects the grantee against claims. |
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Special Warranty Deed |
A special warranty deed transfers ownership to a prospective buyer/grantee but guarantees only that there has been no encumbrance of the property during the grantor’s, or seller’s, ownership. |
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Grant Deed |
This document ensures the grantee that the grantor hasn’t sold the property to another and has disclosed all liens on the title. |
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Quitclaim Deed |
With a quitclaim deed, the grantor doesn’t ensure that they have a legal right to transfer the property to the grantee. Instead, this type of deed just transfers ownership from one party to another. |
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Interspousal Transfer Deed |
This document transfers title (ownership) between a married couple, often when a transfer of title to property must be done as part of a divorce settlement. |
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Deed In Lieu Of Foreclosure |
A deed in lieu of foreclosure is a deed signed by a homeowner/grantor who faces foreclosure and chooses to avoid the process by granting ownership of the property to the mortgage owner. |
Grantor Vs. Grantee FAQ
Learn more about grantors versus grantees with these commonly asked questions.
What is the grantor-grantee index?
There are two lists that document the names of the parties transferring the property. One is the grantor index, an alphabetic list of sellers (grantors). The other is the grantee index, an alphabetic list of purchasers (grantees).
Does the warranty deed go to the grantor or the grantee?
The grantee will receive the original document once it’s recorded, and the grantor will get a copy for their records.
Who is the grantor in my warranty deed?
The grantor is the person who holds the title and is selling the property.
Who is the grantee in my warranty deed?
The grantee is the person who’ll receive the title of the property and become the new owner.
How do grantors and grantees impact estate planning?
The terms grantor and grantee can be used beyond real estate deeds, such as with legal contracts involving trust agreements. The benefit of a trust is that assets can go to heirs without needing to enter the probate process. The grantee listed in a trust is the person who receives the grantor’s assets by way of inheritance or as a gift.
What type of deed offers the best protection to the grantee?
A general warranty deed is often considered the most comprehensive because it promises that the property is under no other claims of ownership. In other words, the grantee will be given the highest level of protection.
The Bottom Line: Grantees And Grantors Are Part Of A Real Estate Transaction
Understanding the role between grantor and grantee is an important part of a successful real estate transaction. Staying informed will keep you on top of every detail. The next step is to visit Rocket Mortgage® to learn more about buying a house.
Carey Chesney
Carey Chesney is a Realtor® and freelance writer that brings a wealth of experience as a former Marketing Executive in the fields of Health Care, Finance and Wellness. Carey received his Bachelor's in English at University of Wisconsin-Madison and his Masters in Integrated Marketing & Communications at Eastern Michigan University. You can connect with Carey at https://www.linkedin.com/in/careychesney/.
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