Deeds are categorized according to the type of title warranty provided by the grantor. Covenants in a general warranty deed can include a covenant of seisin, a covenant against encumbrances, a covenant of quiet enjoyment, and a covenant of further assurance. A grantor passes real property in or by deed. A grantee receives the property. Laws regarding the rights and obligations of grantors are typically governed by state law and can vary between states.
Most real estate documents clearly identify the grantor and grantee. However, some deeds bury the grantor identity within the property description and exchange considerations. Once you find the grantee, you know the second party will be the grantor. What is not so helpful is that chain of title searches are performed using grantee books, which, as the name implies, are arranged by the identity of the grantee.
To find past grantors, you must work backward using the grantee information to determine when the current owner acquired the title and from whom. Fortunately, you would only need to resort to the grantee books if there has been no title transfer in recent years.
Most property deeds and transfers are digitally recorded these days making the title search much easier than it was before. A crucial element in creating a deed is that the grantor and grantee must be identifiable.
The grantor and grantee may not be in the opening lines or paragraphs. Every deed must be signed by the grantor and grantee, though. If all else fails, the signatures at the end of the contract should identify each. Digital documents can be made searchable, simplifying the identification process as long as the parties involved are correctly labeled.
Also, digital signatures are easier to read. But if you must deal with documents that originated before computer technology was common, you will be spending a great deal of time at the county courthouse poring through grantee books. Keep reading to find out their differences, types and discover how they are recorded.
The grantor is the person or entity that gives away property or rights to another person or entity. And the receiving side is known as a grantee —or a beneficiary, especially in trusts, wills, and life insurance policies. Keep in mind that lawyers are qualified professionals to ask for advice regarding legal issues. If we interpret the words from a real estate point of view, the grantor is the seller of a property, and the grantee is the person who buys it. In this case, the homeowner transfers title through a deed the legal record where the transaction is documented.
It is not limited to issues that arose during the seller's ownership. A county grantor-grantee index provides a record of real estate transfers showing who released ownership of a property and who took ownership. The index also shows the property's legal description, its location, and the type of document used to transfer ownership e.
Typically, the index is maintained by the county recorder. The parties in a debt lien are also known as grantors and grantees. The most common of these include mechanic's liens, tax liens, and judgment liens.
In a financed automobile arrangement, the car's owner grantor transfers their interest in the vehicle to the lender grantee. The grantee has an interest in the asset until the loan is satisfied by the grantor. If the grantor breaches the contract, the grantee may take possession of the asset. Real Estate Investing. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. A grantee is a legal term used in real estate that describes the person buying a property. You can also be a grantee without receiving a property deed.
For instance, a land contract features both a grantor and a grantee. The grantor is the owner, and the grantee is the buyer who is acquiring an equitable interest but not bare legal interest in a property. It's essential that a deed clearly states the grantee, grantor, and a description of the property involved.
Any obscure language leaves both parties at risk for questioning and potential legal hurdles. The five most common types of property deeds are warranty deeds, grant deeds, quitclaim deeds, interspousal transfer deeds, and grant deeds in lieu of foreclosure. With a warranty deed, the grantee receives a warranty from the seller to forever defend the title against claims of all people.
It ensures that the seller has the full right to sell the property. It also ensures there are no liens that exist on the title that could prevent them from selling it. Above all else, it's about protecting the grantee.
With a grant deed, the grantee receives guarantees that the grantor has not sold the property to another party. They also are guaranteed that they have disclosed all liens and restrictions on the title that they know about. The grantee receives whatever interest the grantor may or may not possess. The grantor of a quitclaim deed doesn't guarantee that they have a legal right to transfer the property; it's a small chance they might not even legally own it.
Because of the uncertainty, this type of deed is generally not used between parties who don't know each other well. It's more often used among family members, and it offers the least amount of legal protection.
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