Grantor vs Grantee: Know the Difference to Avoid Property Disputes
February 28, 2025
5 minutes
4.62 million houses have been sold in 2024 so far. In this transaction, there are two important roles that you need to know: a grantor and a grantee. Both of them play a big part in the process of buying, selling, and transferring a property.
Whether you are a buyer or seller, you need to know the legal know-how of the real estate market. If you want to buy or sell a house, you can check real estate websites like reAlpha. The platform leverages AI to get the best deal on all your dealings.
What is a Grantor?
A grantor in a transaction is the party that conveys the sale of the asset to someone else. In real estate, it is a person selling a piece of property to a buyer. They can be anyone from a homeowner, landlord, band, or anyone who owns a piece of real estate.
A grantor takes the lead in transferring property ownership. Furthermore, they ensure that the transfer of the property is legal and valid.
Understanding mortgage contingency clauses is crucial for grantors to ensure a smooth and legally protected property transfer.
Who is the Grantee?
A grantee is an individual who is on the other side of the transaction and acquires the asset. In a real estate transaction, it is a person buying or renting the property or land. It is a homebuyer or tenant who is taking possession of the house or land.
If you're a grantee financing a property, knowing how mortgage pre-approval works can strengthen your home-buying position.
Difference Between Grantors and Grantees
The major difference between a grantor versus grantee is their roles in transaction and legal agreements. While grantors take the lead on transferring property ownership legally, grantees are on the flipside, taking over ownership of the property.
Both parties must consider mortgage fraud risks and ensure legal compliance throughout the transaction.
| Grantor | Grantee |
|---|---|
| Transfers the ownership of property and interest. | Gets the property ownership from the grantor. |
| Ensures the transfer is smooth and complies with all legal requirements. | Needs to check that the terms are correct to take ownership of the property. |
| Typically the current owner of the property. | The intended future owner of the property. |
| Responsible for drafting all legal documents. | Obligated to fulfill all the requirements written in the agreement. |
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What are Grantee and Grantor Real Estate Deeds?
A grantee and grantor have a unique relationship based on the circumstances of the transaction. Both use different real estate property deeds and documents to outline their expectations. Here are some important deeds you should know about
1. General Warranty Deed:
A general warranty deed is a legal document where ownership is transferred from the grantor to the grantee. It has certain guarantees that the property is free of liens or encumbrances except those stated in the deed.
This ensures that a grantor gets a clear title to protect themselves and is defended against any claims from third parties. It also provides the grantee with the highest level of protection that ensures the title and quality.
2. Special Warranty Deed:
A special warranty is similar to a general warranty deed. This legal document offers albeit limited protections to both parties. In this deed, there is an assurance that the grantor doesn’t have any title problems except for those mentioned in the deed.
The deed only guarantees the property’s title for the time period owned by the grantor. It doesn’t protect the grantee against third parties before the ownership of the grantor.
3. Grant Deed:
A grant deed is a limited warranty deed that facilitates transfer between the grantor and the grantee. The deed requires the seller to guarantee that the property title is free and clean. However, it doesn’t protect the grantee from any claims made on the property before the ownership of the grantor.
4. Quitclaim Deed:
In a Quitclaim deed, any interest in the property is transferred from the grantor to the grantee. However, it doesn’t provide any warranty about the property title. You simply get a claim or interest that may have in the property.
The type of deed is usually common amongst family members if they want to remove a name from a property deal. The laws and requirements from a Quitclaim deed vary depending on the jurisdiction.
5. Deed in Lieu of Foreclosure:
It is a legal agreement that most homeowners should avoid, even during hard times. The deed helps avoid the forced seizure of one’s property. The agreement requires the grantee to hand over the ownership of the property directly to the mortgage lender in case of missed payments. This frees the grantee from any mortgage debt.
Grantor vs Grantee: The Bottom Line
Grantors and grantees play crucial roles in real estate transactions - one transferring ownership, the other acquiring it. Understanding legal requirements, property deeds, and financing options is essential for a seamless transaction.
But why go through it alone when you can leverage AI-powered real estate solutions?
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- AI-driven property valuation & deal sourcing to maximize your sale price or find the best home investment.
- Seamless, commission-free transactions eliminating unnecessary agent fees.
- Full support from start to finish-whether you're buying or selling.
FAQs
1. What is the difference between grantor and grantee?
A grantor is a person selling the property in real estate. While grantee is the person buying the property from the grantor.
2. Which type of deed offers the grantee the most protection?
A general warranty is a strong deed as it offers the most protection. A quitclaim deed is the weakest as it offers the least protection.
3. Can grantor and grantee be the same person?
In certain situations, it can be the same person. For example, if an individual transfers a property they own to their own trust they established. So, in this case, the grantor and the grantee are the same person.
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Article by
As a great communicator with excellent negotiation skills, I focus more on establishing unbreakable ties between my clients, as opposed to just helping them achieve their real estate dreams. As a representative of both buyers and sellers, I understand how to lead a transaction process to ensure that the needs of both are met. My track record speaks for itself. Since I ventured into the industry in 2013 as a realtor, I have not only helped many buyers land perfect homes, but I have also assisted tons of owners and investors build wealth.