What is a Grantor in Real Estate? FAQs Answered

A grantor is a person or entity that transfers ownership of their property to someone else, known as the grantee.

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What is grantor[ MyHOUSE]
In a real estate transaction, the grantor is typically the seller of the property.

The grantor may also be the landlord who rents out their property to someone else.

The grantor can be any entity that owns and wants to sell or rent out their property.

The relationship between grantor and grantee, their rights, and their responsibilities are outlined in a legal contract called a deed.

When property changes hands, the grantor transfers the legal rights to own, use, and/or sell the property to the grantee.

This legal right is known as the “title,” and the transfer of title is granted using a legal document called a property deed.

READ MORE: How to Invest in Real Estate Without Buying Property: A Guide for Beginners

What is a grantee?

The grantee represents the other side of the real estate transaction: the buyer or the renter.

They acquire property from the grantor either through a home sale or rental.

What is a deed?

A deed is a legal document that transfers ownership of a property from the grantor to the grantee.

There are different types of deeds to define the terms of the transfer, depending on the state where the grantor lives.

What is a general warranty deed?

A general warranty deed conveys property ownership from the grantor to the grantee, and it offers the highest level of protection for the grantee.

The grantor confirms there are no undisclosed legal issues with the property title or the property itself.

If the grantee discovers issues later on—like easements, tax liens, or outstanding mortgages—the grantor must pay the legal costs to defend the grantee.

This protection covers the time before and during the grantor’s ownership.

What is a special warranty deed?

A special warranty deed also transfers property ownership from a grantor to a grantee.

The grantor pledges there are no encumbrances to the title liens, for examplebut only while they owned the property.

The grantor won’t be liable for issues that arose from previous owners.

This type of deed is most often used by temporary owners, such as a bank that forecloses a property and puts it up for sale.

What is a grant deed?

A grant deed also transfers property ownership from the grantor to the grantee.

It guarantees that the grantor hasn’t transferred the property to anyone else and hasn’t encountered title problems while they owned the property.

Conclusion

In conclusion, a grantor is a person or entity that transfers ownership of their property to someone else.

The grantor can be the seller of the property or the landlord who rents out their property.

The relationship between grantor and grantee, their rights, and their responsibilities are outlined in a legal contract called a deed.

When property changes hands, the grantor transfers the legal rights to own, use, and/or sell the property to the grantee.

This legal right is known as the “title,” and the transfer of title is granted using a legal document called a property deed.

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