Real estate transactions involve a lot of legal terms that can be confusing for buyers and sellers. Two of the most important terms in any real estate transaction are “grantor” and “grantee”.
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In this blog, we will define these terms and answer some frequently asked questions about them.
WHAT IS A GRANTOR?
A grantor is a person who transfers ownership of a property to someone else. This person is also known as the “seller” or “transferor” in a real estate transaction. The grantor must have legal ownership of the property to be able to transfer it to someone else.
WHAT IS A GRANTEE?
A grantee is a person who receives ownership of a property from the grantor. This person is also known as the “buyer” or “transferee” in a real estate transaction. The grantee must accept the transfer of ownership and assume any responsibilities that come with owning the property.
WHAT ARE THE RESPONSIBILITIES OF A GRANTOR?
The grantor has several responsibilities in a real estate transaction. These responsibilities include:
- Providing clear title to the property – The grantor must prove that they have legal ownership of the property and that there are no liens or encumbrances on the property that could affect the transfer of ownership.
- Delivering possession of the property – The grantor must provide the grantee with physical possession of the property at the time of the transfer of ownership.
- Paying off any outstanding debts on the property – The grantor must pay off any outstanding debts or mortgages on the property before transferring ownership to the grantee.
- Disclosing any known defects or issues with the property – The grantor must disclose any known defects or issues with the property to the grantee before the transfer of ownership.
WHAT ARE THE RESPONSIBILITIES OF A GRANTEE?
The grantee also has several responsibilities in a real estate transaction. These responsibilities include:
- Accepting the transfer of ownership – The grantee must accept the transfer of ownership and assume all responsibilities that come with owning the property.
- Paying the purchase price – The grantee must pay the purchase price to the grantor in exchange for ownership of the property.
- Assuming any outstanding debts or mortgages on the property – The grantee must assume any outstanding debts or mortgages on the property that were not paid off by the grantor.
- Inspecting the property – The grantee should inspect the property to ensure that it is in good condition and to identify any defects or issues before accepting ownership.
WHAT IS A GRANT DEED?
A grant deed is a legal document that transfers ownership of a property from a grantor to a grantee. The grant deed includes a description of the property, the names of the grantor and grantee, and the terms of the transfer. The grant deed must be signed by the grantor and notarized before it can be recorded with the county recorder’s office.
WHAT IS THE DIFFERENCE BETWEEN A GRANTOR AND A GRANTEE?
The main difference between a grantor and a grantee is their role in a real estate transaction. The grantor is the person who transfers ownership of a property to someone else, while the grantee is the person who receives ownership of the property. The grantor has several responsibilities in the transaction, including providing clear title to the property and paying off any outstanding debts, while the grantee must accept ownership and assume any responsibilities that come with owning the property.
FINAL THOUGHTS
In conclusion, understanding the roles and responsibilities of a grantor and grantee is essential for any real estate transaction. The grantor is responsible for transferring ownership of the property and ensuring that the transfer is legal and free of any liens or encumbrances, while the grantee is responsible for accepting ownership and assuming any responsibilities that come with owning the property, including paying the purchase price and assuming any outstanding debts or mortgages. By understanding these roles and responsibilities, both parties can ensure a smooth and successful real estate transaction.
YOU CAN ALSO READ: HOW TO AVOID INCOME TAXES (LEGALLY) WITH REAL ESTATE INVESTING
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