To put it simply, a grantee is someone who has been awarded a grant, scholarship, or another form of property. On the other hand, a grantor is an entity that transfers property rights to another party. Grantee and grantor identification is crucial in legal agreements since each party is usually subject to different obligations, privileges, and restrictions.

Understanding Grantees

One who receives a grant is called a grantee. The phrase has several applications in a variety of fields and establishments. Title to natural land is transferred to the grantee upon payment in full. Academics use the term "grantee" to refer to the person who has been awarded a scholarship or grant.

A grantee can get stock options in the financial sector. Deeds and other legal instruments that transfer ownership interests or rights to an asset often identify the Grantor and the grantee. What is being shared, however, may vary from one legal instrument to another. In real estate, for instance, a quitclaim deed makes no representations to the grantee about the quality of the title to the property.

Who Are The Grantors and Grantees in a Real Estate Transaction?

Person-to-person exchanges are the norm, with both the Grantor and the recipient being persons. A firm or organization may act as either the donor or the recipient of a grant. A developer may sell hundreds of houses to individual buyers, or a municipal may take property for unpaid taxes.

In truth, the connection between a grantor and a grantee need not include an outright sale. It's also possible for this to be a short-term or conditional connection. Relationships between a lessor and lessee are an excellent illustration of the former. The lessor agrees to provide the lessee temporary residency for monthly rent payments. If the lessee wants to stay in the space, they have to commit to paying rent on time.

Five Different Types of Grantor and Grantee Deeds

Warranty deeds, interspousal transfer deeds, and grant deeds instead of foreclosure are the five most prevalent forms of property documents.

Warranty Deed

By executing deed, the seller guarantees the grantee that they will take responsibility for protecting the property's title indefinitely from any third-party claims. This verifies that the seller is free to sell the property without any restrictions. It also demonstrates that the title is free of any encumbrances that would prohibit a sale. The grantee's safety must come first.

Grant Deed

When a grantor conveys property to a grantee, the latter is assured that the Grantor has not already sold the land. Additionally, they promise to have made public any information concerning encumbrances or claims to the title they are aware of.

Quitclaim Deed

Grantee shall be entitled to all interests owned by Grantor, whether or not Grantor owns any such claims. The Grantor of a quitclaim deed makes no representations or warranties regarding their ability to convey title, and there is a remote possibility that they may not own the land.

This sort of deed is not commonly utilized between parties who do not know one other very well because of the inherent uncertainty. It's less common outside of close families and provides less protection overall.

Interspousal Transfer Deed

The grantee of this deed does not have to pay any transfer tax while receiving the spouse's interest, which may include a life estate in the communal property. Unless the title were given to one spouse as a gift, it would be passed to the surviving spouse when a couple gets married.

This is considered individual property, not shared. Most frequently, these deeds are utilized when one spouse has significantly higher credit than the other; this is sometimes done with a mortgage refinancing to take advantage of a lower interest rate.

5. Grant Deed instead of Foreclosure

The grantee, in this case, is usually the lending institution from which the borrower is indebted. A deed is transferred from the property owner to the grantee. This is one option for people who want to get out from under their mortgage obligations and stop the foreclosure procedure.

It is usually the final resort for a property owner who has exhausted all other avenues. They may have accepted the inevitable and made peace with the idea that they'll have to move. For many, the prospect of foreclosure is humiliating; this option allows them to avoid public scrutiny while still avoiding foreclosure.

Special Considerations

You may find out who gave up their land and took it over by looking at the grantor-grantee index maintained by the county government. Location, conveyance type, and property description may all be found in the index (e.g., quitclaim deed, trust deed, or tax lien). The county recorder usually takes care of updating the index.