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PeopleImages/Getty Imgaes August 23, 2022 AJ Dellinger is a contributing writer for Bankrate. AJ writes about auto loans and real estate. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Bankrate logo The Bankrate promise
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. One of the most overwhelming parts of buying and selling a home is the terminology. A lot of technical terms with highly specific meanings get thrown around throughout the transaction that don’t come up in common parlance, or even other financial dealings. One of the most important pairs of terms that you’ll come across is grantor and grantee. It’s essentially legalese, the official language in purchase agreements to describe, basically, the home seller and the home buyer. But it will be ever-present in the contract and discussion with the real estate attorneys and other real estate pros involved in the sale and . So you will want to understand the basics of what each term means, especially the one that applies to you.
What is a grantor
A grantor is one side of the transaction, the party who is conveying the sale of an asset to someone else. In a real estate context, the grantor is the person who is . It could be a homeowner, a bank, a landlord or any other person who possesses land or real estate that they wish to unload.
What is a grantee
The grantee is the other side of the transaction — the party acquiring the asset. In the case of a real estate transaction, it is the person buying or renting land or property. This could be a homebuyer, a tenant or anyone else who is taking ownership/possession of a piece of land or property, like a house.
Grantors grantees and real estate deeds
The grantor and grantee are in relationship with one another. Basically, the grantor is selling or leasing a piece of property to the grantee, who is paying to purchase or use it. These relationships are dictated by different types of contracts, called , that define the exact terms of the transfer. Warranty deed
General A general is a legal document that dictates the transfer of a property from the grantor to the grantee. It binds the seller or grantor by requiring them to provide assurances that there are no issues with the property or the property itself. It offers the most protections to the grantee, including requiring the grantor to pay the legal costs if any issues were to arise — including claims that go back to a period before the current grantor’s ownership (under a different owner, in other words). Special A special warranty deed is like a general warranty deed, but it provides some specific, albeit limited, protections to the grantee or buyer. Under a special warranty deed, the grantor is required to guarantee that their property has no encumbrances on it — that is, there is no risk of creditors filing a lien on the home that could hinder the transfer. The grantor must transfer ownership of the property directly, and must ensure that any mortgage is (or will be) fully paid off. However, the special warranty deed only applies to the period of time that the seller owned the property and does not dictate any encumbrances that may have come before they took ownership of the property. Grant deed
A is also known as a limited warranty deed. It is very similar to a special warranty deed (and sometimes goes by that term too): It requires that the seller guarantee the property title is free and clean, but it does not protect the grantee from any claims made on the property prior to the grantor’s ownership. Quitclaim deed
Like a grant deed, a transfers ownership of the property from the grantor to the grantee. But it doesn’t have the same type of protection because it does not guarantee that the grantor actually holds the property title or that the title is clear. If it turns out the grantor sold the property with issues on the title, there is no protection for the grantee. Quitclaim deeds only apply in specific situations, like a transfer between family members or a transfer to a trust. In a transfer between parties that don’t have an existing relationship — an arm’s length transaction — the quitclaim deed likely does not provide enough protection. Deed in lieu of foreclosure
Foreclosure is a situation that most homeowners would like to avoid, even when hard times hit. A allows for the possibility of avoiding forced seizure of one’s property. This agreement requires the grantee to voluntarily hand over ownership of their property to the mortgage lender in case of missed payments. In doing so, the grantee is released from their mortgage debt. Note that it doesn’t stop the loss of the home: Instead it’s a tool for avoiding the foreclosure process, which can adversely affect your credit score and make it harder to get a home in the future. It also avoids a lengthy legal process for the grantor. Special purpose deed
A special purpose deed is used when the person signing the deed is not serving as the grantor themselves, but rather simply acting in an official capacity on someone else’s behalf. This may be an estate executor, a power of attorney, or other estate administrator. This means the grantor is not liable if there is any claim against the property. Interspousal deed
An allows for the transfer of ownership of a property to one party of a marriage. It is often used in divorce cases to transfer the deed to one person, particularly when the property was previously owned by both people or the other party. Once transferred, it is common for the grantee to refinance as the sole owner or to sell the property. Final word on grantors and grantees
Grantors and grantees are on the opposite end of a transfer of title, with grantors serving as the sellers or lessors and grantees acting as the buyers or leasees. Most deeds provide some form of protection to both parties, in terms of ownership of and responsibility for the property, and claims and liens against it. Even with deeds that afford a fair amount of protection for them (like the general warranty), grantees might want to get to provide additional coverage for their liabilities, especially during the process; many mortgage lenders insist on it, in fact. SHARE: AJ Dellinger is a contributing writer for Bankrate. AJ writes about auto loans and real estate. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Related Articles