If you’re looking to transfer ownership of a property, you’ll need to choose between a grantor and grantee deed. But what’s the difference between the two?
In a nutshell, a grantor deed transfers ownership from one person to another, while a grantee deed transfers ownership from a group of people to an individual. So, if you’re looking to transfer ownership of a property from yourself to another person, you’ll need to use a grantor deed. But if you’re looking to transfer ownership of a property from a group of people to an individual, you’ll need to use a grantee deed.
Still not sure which one is right for you? Let’s take a closer look at the difference between grantor and grantee deeds.
What is a grantor deed?
A grantor deed is a type of deed used in conveying real property ownership in which the grantor, or seller, transfers ownership to the grantee, or buyer. The key difference between a grantor and a grantee deed is that a grantor deed has covenants, or promises, that run with the land, meaning that they are binding on future owners of the property. A grantee deed does not have these covenants.
What is a grantee deed?
A grantee deed is a type of deed used in some U.S. states that contains a covenant, or promise, by the grantor (seller) that he or she holds title to the real property being conveyed and has the legal right to sell or convey it. The grantee (buyer) is then given title to the property subject to any easements, conditions, or restrictions noted in the deed.
Grantor vs grantee deed
The biggest difference between a grantor and grantee deed is the party who holds the title to the property. The grantor is the party who transfers the title to the grantee. In other words, the grantor is the seller and the grantee is the buyer.
Another important difference between these two types of deeds is that a grantor deed includes a warranty of title. This means that the grantor promises that he or she holds clear title to the property and that there are no encumbrances on the property, such as liens or outstanding mortgages. A grantee deed, on the other hand, does not include a warranty of title. This means that the grantee takes on the responsibility for any problems with the title that may arise in the future.
Finally, it’s important to note that a grantor deed must be signed by the grantor in order to be valid, while a grantee deed does not need to be signed by the grantee. However, both deeds must be properly executed and delivered in order for them to be effective.
When should you use a grantor deed?
A grantor deed, also known as a quitclaim deed, is typically used to transfer property between family members or when the property owner wants to remove his or her name from the deed. This type of deed does not offer any guarantees about the quality of the title or whether there are any outstanding claims on the property.
When should you use a grantee deed?
A grantee deed is most commonly used in a sale or transfer of property. The grantor, or seller, gives the grantee, or buyer, the title to the property in exchange for money or other compensation. The grantor deed contains a covenant, or promise, that the property is free of encumbrances, such as liens or mortgages. If the property is later found to have an encumbrance, the buyer may sue the seller for damages.
How to choose between a grantor and grantee deed?
Both grantor and grantee deeds have their own advantages and disadvantages, so it’s important to choose the one that best fits your needs.
Grantor deeds are usually used to transfer property between family members, or to give someone a life estate. They can also be used to avoid probate if the property is worth less than the state’s probate limit.
Grantee deeds are typically used when selling property to a third party, such as in a real estate transaction. They can also be used to transfer property from an irrevocable trust to the trust’s beneficiaries.
The pros and cons of a grantor deed
A grantor deed is a type of deed in which the grantor (seller) transfers ownership of real property to the grantee (buyer). The main advantage of a grantor deed is that it provides some level of protection for the buyer. If the title to the property is later found to be defective, the buyer can typically sue the seller for damages.
There are some potential drawbacks to using a grantor deed, however. First, if the seller is sued by someone else after the sale (for example, if someone is injured on the property), the buyer may also be named as a defendant in the lawsuit. Second, if the seller later decides to sell the property again, he or she may need to get consent from the buyer before doing so.
The pros and cons of a grantee deed
When you sign a grantee deed, you’re giving the title of the property to someone else. The advantage of this is that it’s a simple way to transfer ownership and doesn’t require a notary. The downside is that if the grantee doesn’t make their mortgage or tax payments, the property will go into foreclosure and you, as the grantor, could be held liable.
Which is better for you?
A grantor deed is a type of deed where the grantor (seller) transfers their interest in a piece of property to the grantee (buyer). A grantee deed is a type of deed where the grantee (buyer) transfers their interest in a piece of property to the grantor (seller).
So, which is better for you? It depends on your situation. If you’re selling a property, you may want to consider a grantor deed so that you can retain some control over the property. If you’re buying a property, you may want to consider a grantee deed so that you can be sure that the title is clear and there are no outstanding liens or encumbrances on the property.
FAQs about grantor vs grantee deed
A grantor deed is a type of deed used to transfer title or ownership of real property from one person to another. The grantor is the person who transfers the property and the grantee is the person who receives it.
Grantor deeds are also known as quitclaim deeds. They are commonly used in situations where the grantor wants to transfer ownership of the property but is not sure if they have clear title to it. For example, a grantor might use a quitclaim deed to transfer property to a family member.
Grantee deeds are more commonly used in situations where the grantor wants to be sure that they have clear title to the property before transferring it. For example, a grantee deed might be used in a sale of a home or other piece of real estate.
Key Differences Between Grantor and Grantee Deeds
The key difference between grantor and grantee deeds is that grantor deeds do not guarantee that the grantor has clear title to the property, while grantee deeds do.
Other important differences between these two types of deeds include:
-A grantor deed can be revoked by the grantor at any time, while a grantee deed cannot.
-A grantor deed requires less paperwork than a grantee deed.
-A grantee deed gives the Grantee certain rights that they would not have with a Grantor Deed.