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The Difference Between Grantor vs. Grantee in Real Estate.

The Difference Between Grantor vs. Grantee in Real Estate

In real estate, the difference between grantor vs. grantee is that the grantor is the person who transfers a property they own to a grantee, the receiver.  So why not just say seller and buyer?

Because there is legal meaning behind the titles “Grantor” and “Grantee” when it comes to the deed.  A deed is the legally binding document that transfers the property from one party to another. Because it is a legal document, the terminology must have legal meaning.  If these Grantor and Grantee do not appear on the deed, then the document may not be legally binding and the deal can fall through or be challenged.

A grantor and a grantee can be related or unrelated to each other. You can have a single person selling to a corporation, one spouse transferring property to the other, or any number of scenarios.  And no money has to be exchanged.  You could be a grantor transferring your real estate to a grantee like a spouse giving ownership of a property to their significant other or parents giving a property to their kids.

The roles of a grantor vs. a grantee are also different.

The Role of the Grantor

The Grantor’s role in real estate transactions is to transfer their ownership of a specific house or property. As a grantor, it is your responsibility to sit down with a lawyer and outline the deed to make sure it is clear what you are transferring to the grantee and if there is anything you are keeping.

Once the deed is complete, it will be delivered to the grantee and filed with the county clerk so the property transfer is documented within the county records. Most counties charge a small fee (around $10) to record your deed.

Now let’s take a look at a grantee’s role in the transaction.

The Role of the Grantee

The role of the Grantee is to receive the title and deed of the property from the Grantor. If the transfer is a success, you become the legal owner of the property, unless a claim to the title is made. If this happens, you’ll want to make sure you have a title insurance policy.  Otherwise you’ll be responsible for legal expenses if the grantor did not have the legal right to sell you the property and someone makes a claim, or any other title issues including the property not being zoned correctly for your intended use.

As a grantee you are also responsible for making sure the deed was filed with the county. To make sure this has been completed you have two options.

  1. You can check with the grantor’s title company.
  2. Call or visit the county clerks office and check the records to verify yourself.

Now that you know who the grantor and grantee are, the differences when it comes to Grantor vs. Grantee, and what each person’s responsibilities are.

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