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4 min read May 16, 2023

Grantor V/s. Grantee: What’s The Difference?

Acquiring a home involves more than just finding the “right” one. The transfer of ownership rights requires knowledge of the legal language used in real estate. Although it may seem intimidating, learning the basics is important for every future homeowner.

In this blog, we discuss in detail – what is a grantor and a grantee.

Let’s break down the details

Who Is A Grantor?

The Grantor is the person who conveys or encumbers the property and has any Lis Pendens, Judgments, Writ of Attachment, or Claims of Separate or Community Property placed on record.

The Grantor can be the seller (on deeds) or borrower (on mortgages) and is typically the one who signs the document.

Who Is A Grantee?

The grantee is the person or entity who receives the transfer of ownership of real property from the grantor. The grantee can be an individual, a group of individuals, or an entity such as a corporation or a trust.

Once the transfer of ownership is complete, the grantee becomes the legal owner of the property and assumes all associated rights and responsibilities.

Documents With Grantors And Grantees In Real Estate

The grantor and grantee are parties involved in a transfer of property. The grantor sells or leases the property to the grantee, who pays to purchase or use it. These parties enter into a contract, typically called a deed, which specifies the precise terms of the transfer.

General Warranty Deed

A General Warranty Deed is a legal document that transfers ownership of real property from a grantor (seller) to a grantee (buyer). It guarantees that the property is free of any liens or encumbrances, except those specifically stated in the deed.

The General Warranty Deed also provides a warranty that the grantor has clear title to the property and will defend against any claims made by third parties. In essence, the General Warranty Deed provides the highest level of protection for the grantee by guaranteeing the title and quality of the property being conveyed.

Grant Deed

A grant deed facilitates property transfer between the grantor and the grantee. It offers limited protection to both parties. The deed has two warranties – the grantor’s right to sell and the clear title. It doesn’t cover any claims made before the grantor’s ownership.

The seller is secure against liability for previous title problems. The buyer is safe from current title problems.

Quitclaim Deed

A Quitclaim Deed is a legal document that transfers any interest in a property from one party (grantor) to another party (grantee) without providing any warranties or guarantees about the property title. The grantor simply gives up any claim or interest they may have in the property to the grantee.

Typically used to transfer ownership between family members or remove a name from a property title, a Quitclaim Deed does not guarantee a clear title or protect the grantee from any claims by third parties.

Special Warranty Deed

A Special Warranty Deed is a legal document used to transfer property from a seller (grantor) to a buyer (grantee), with a limited warranty against title defects. It assures the grantee that the grantor has not created any title problems, except for those specifically mentioned in the deed.

Unlike a General Warranty Deed, a Special Warranty Deed only guarantees the property’s title for the time the grantor owned it. It does not provide protection against any claims made by third parties before the grantor’s ownership.

Deed In Lieu Of Foreclosure

A Deed In Lieu Of Foreclosure is a legal agreement between a borrower (mortgagor) and a lender (mortgagee). The borrower conveys the property to the lender in exchange for the release of the mortgage loan. This option is usually considered when the borrower is unable to make mortgage payments and foreclosure.

By voluntarily transferring ownership of the property to the lender, the borrower avoids foreclosure proceedings and the associated legal costs. The lender benefits by obtaining the property without the expense of a foreclosure sale. However, the lender may still report the deed in lieu as a negative event on the borrower’s credit report.

Bottom Line

In real estate, the grantor always transfers ownership of the property to the grantee. The types of deeds used for the transfer may vary.

Whether you are selling a house or buying a property, it is essential to have a good understanding of the real estate process. So, keep improving your knowledge to prepare for any future transactions.

Frequently Asked Questions

1. Is grantor and owner the same?

The current owner of a property is the grantor in real estate transactions. When transferring ownership or selling a property, the grantor is the one who sells or transfers the property to the new owner. The term "grantor" is commonly used in legal documents related to property transfers.

2. Is the borrower the grantee?

To identify the grantor and grantee in a document, remember that the grantor is the seller (on deeds) or borrower (on mortgages), and the grantee is the buyer. Furthermore, the grantor is typically the person who signed the document.

3. What is the difference between grantee and trustee?

In a property transaction, the grantee is the person who receives the property. In the case of a deed of trust, the grantee is not the lender. Instead, the grantee is the trustee who holds legal title to the property while the borrower repays the mortgage to the lender.


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