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Grantor Vs. Grantee: What’s The Difference?



Grantor vs. Grantee

Understanding who is a grantor and who is a grantee pinpoints the transaction process of a loan. A grantor is a person who provides the loan or the asset that interests you in the first place. In simple words, a grantor will transfer their ownership of the property (if you are spending on real estate or housing loan) to you.  And, a grantee will be the person to accept the loan or what the grantor is offering, aka the buyer of the asset. Read the difference between grantor vs. grantee. 

Difference between a Grantor and a Grantee: All the Legal Aspects!

After the hustle of finding the finest style of purchase a person wants to establish comes knowing the details of the chosen property. In case you are opting for a loan, this will become the deal you would want to establish with the bank itself. 

People find the best type of investment area after considering their income, basic expense routine, liabilities, some saving passbooks, and the exact amount they can spend as a payback process. 

The relationship between a grantor and the grantee is however very distinct in that case! Multiple times people have rejected a fair offer because the grantor somehow failed to establish a faith bonding! And since it’s a matter of money, buyers withheld to take up unnecessary stakes!

Luckily there are a whole set of document lists that a buyer, or grantee, can rely on even if the grantor fails to impress them. These docs are a detailed record sharing expectations, duties, and accord of both parties sealed with a signature. In no terms can a grantor or a grantee break the legal bond at their whim! There are different tools that a renter or a landlord can use such as an IRR calculator or a cash for cash return calculator

Check out the list here. 

Documents between a Grantor and Grantee

The Grant Deed

The grant deed facilitates the property or loan transfer from the grantor or the grantee. This document is meant to protect both parties to a mere extent, breaking the type of security into two kinds of warranties. 

So, call it a limited warranty deed; it stands for the same thing!

The first one says that the grantor is rightfully selling the property to one person, the grantee, and did not sell the property to anyone else in the past. So, in the first law, the grantee will get a confirmation that the grantor is the immediate owner of the property. 

The second assurance that the Grant Deed brings to the table relates to title issues. It says that the liens or title problems on the house do not exist until the time of the property’s sale. 

So, at the end of all, the Grant Deed protects the buyer from any liability associated with the property’s history of buyers or legal allegations. 

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The Special Warranty Deed

Special Warranty Deed takes for the grantee’s side of protection. Here, the grantor makes a special type of contract with the grantee confirming that the property is clear from legal charges and legally fine for a new party to take the charge, till the time the grantee is owning the property. A simplified way of understanding the law will be to believe (legally) that the grantor has paid and checked every pending action against the property. 

To Note: The Special Warranty Deed applies to the grantor’s ownership only. The seller of the property is not responsible for any claim brought on the property before the grantor owned the property. The best thing to do here, to escape any glitch in the future will be to ask the grantor about the property owner before him/her. 

The Quitclaim Deed

Some deeds between the grantor and the grantee are made for special situations. The Quitclaim Deed falls in that category!

This deed is very useful when trying to transfer the property between any family members, or the property owner wants to transfer or withdraw the property to a trustee board permanently. 

Hence, the quitclaim deed explains the transfer between the grantor and the grantee for a situation basis transfer. As a note, before proceeding with this deed, there must be a good establishment between the grantor and the grantee regarding the deed’s parameters, as they might lack protection in some cases. 

The General Warranty Deed

The best and most secure form of legal document is the General Warranty Deed. This document transfers the property from the seller (grantor) to the buyer (grantee), precisely emphasizing the buyer’s security. 

Signing this legal document will notify both parties about their transparency on the property’s undisclosed titles and details about the time the grantor owned the property. In the future, if a problem regarding the property’s history arises, the general warranty deed will bind the grantor to pay for the issue and free the grantee (buyer) from any legal harassment. 

Grantor Vs. Grantee: Conclusion

In the world of dynamic real estate laws, and know-how considering easy loan issuance, one thing remains a solid constant: the role of grantor and grantee in terms similar to buying and selling a property. If not recently, there might come a point where you will want to sell or buy a real estate asset for a genuine fortune. No matter which role you take up, make sure to conduct your research on the requirements, market trends of that time, property history, and the legal constructs of the transaction. We hope the above information was useful and answered your curiosities!