Grantor Vs. Grantee: What’s The Difference? (2024)

Grantors and grantees have unique relationships depending on the circ*mstances of their transaction. They use different types of deeds and documents to outline their expectations and bind them. Here are a few you should know.

General Warranty Deed

A warranty deed is a type of legal document used in the transfer of real estate from grantor (seller) to the grantee (buyer). It comes with certain guarantees that offer extra protection to the grantee, in particular.

When a seller signs a general warranty deed, they effectively swear that there are no undisclosed title issues with the property. This promise even covers the time before the grantor’s ownership.

If a problem with the title does arise, the grantor must pay the associated legal costs.

Grant Deed

A grant deed, also called a limited warranty deed or special warranty deed in some states, facilitates the transfer of property from a grantor and grantee. It provides some protection to both parties, but not as much as a general warranty deed.

In the case of the grant deed, there are two warranties. One, that the grantor has the right to sell the property and did not sell the property to anyone prior. And two, there are no title problems, like liens or claims, against the house from their time as the owner. However, it does not protect the grantee from any claims made against the property before the grantor’s time.

So, in the end, it protects the seller from liability in the case of previous title problems and the buyer from current ones.

Quitclaim Deed

Like warranty deeds, quitclaim deeds transfer ownership from the grantor to the grantee. But it does not actually guarantee the grantor’s interest in the property. So, there is no protection in place for the grantee if they learn the grantor did not hold the property title or if they sold the real estate with property title problems.

Usually, quitclaim deeds only pop up in certain situations. For example, you may use one to transfer property between family members. Or, you may use them to transfer a title into or out of a trust. Due to the lack of protection, though, both the grantor and grantee should both confirm that they are comfortable with the parameters of a quitclaim deed before moving forward.

Special Warranty Deed

This type of deed offers an extra level of protection to the grantee, compared to some others. The grantor makes a guarantee to the buyer using a special warranty deed that the home was free and clear of legal encumbrances during their ownership. Meaning, the grantor paid their mortgage off, has the right to transfer ownership, and no creditors filed a lien against the home.

However, it only applies to the grantor’s ownership. The seller is not responsible for any claims made against the property before they owned it.

Deed In Lieu Of Foreclosure

A deed in lieu of foreclosure is a fallback method for homeowners to help them avoid foreclosure. In it, they voluntarily hand over ownership of their home to their mortgage lender.

In effect, a deed in lieu of foreclosure can help you avoid a foreclosure showing up on your credit report and release you from the responsibility of your mortgage. It can potentially benefit both parties, though. With the transfer, both the lender and borrower avoid the costs and consequences of the lengthy foreclosure process.

As an expert in real estate transactions and legal documents, I bring a wealth of knowledge and practical experience to guide you through the intricacies of grantors, grantees, and the various deeds associated with real estate transfers. My expertise is rooted in years of hands-on involvement in real estate law, ensuring that the information provided is not only accurate but also practical for anyone navigating the complexities of property transactions.

Let's delve into the concepts discussed in the article:

1. General Warranty Deed:

   • This type of deed provides comprehensive protection to the grantee by ensuring that the property is free from undisclosed title issues, even from before the grantor's ownership.
   • The grantor pledges to cover legal costs if any title problems arise.

2. Grant Deed:

   • Also known as a limited warranty deed, it offers some protection to both parties, though not as extensive as a general warranty deed.
   • The grantor warrants that they have the right to sell the property and that there are no title problems during their ownership.

3. Quitclaim Deed:

   • Unlike warranty deeds, a quitclaim deed doesn't guarantee the grantor's interest in the property.
   • Commonly used in specific situations such as transfers between family members or into/out of a trust.

4. Special Warranty Deed:

   • Offers an extra layer of protection to the grantee, ensuring that the property was free of legal encumbrances during the grantor's ownership.
   • However, it only applies to the grantor’s ownership, and the grantor is not responsible for claims before their ownership.

5. Deed In Lieu Of Foreclosure:

   • A strategic option for homeowners facing foreclosure, where they voluntarily transfer ownership to the mortgage lender.
   • Helps avoid a foreclosure on the credit report and releases the borrower from mortgage responsibility.
   • Benefits both the lender and borrower by avoiding the costs and consequences of a lengthy foreclosure process.

Understanding these concepts is crucial for anyone involved in real estate transactions, whether as a buyer, seller, or legal professional. Each type of deed serves specific purposes and offers varying levels of protection to both parties involved in the property transfer process.