Real Estate

What a Grantee Is in Real Estate

What a Grantee Is in Real Estate, The individual purchasing a property is legally referred to as a real estate grantee. You can still be a grantee even if you don’t have a property deed. For instance, both a grantor and a grantee are present in a land contract. The grantor is the owner, while the grantee is the person purchasing an equitable interest in real estate (as opposed to a bare legal interest).

A deed must specify the grantee, grantor, and a description of the property in question. Any cryptic language exposes both parties to possible legal troubles and interrogation.

Five Types of Deeds Naming Grantor and Grantee

Warranty deeds, grant deeds, quitclaim deeds, interspousal transfer deeds, and grant deeds in lieu of foreclosure are the five most popular property documents.

Five Types of Deeds Naming Grantor and Grantee
Five Types of Deeds Naming Grantor and Grantee

1. Warranty Deed

A warranty deed gives the grantee a guarantee from the seller to protect the title against all claims for all time. It guarantees the seller’s complete legal authority to sell the property. Additionally, it guarantees that there are no liens on the title that may prevent them from selling it. The grantee must be protected above everything else.

2. Grant Deed

The grantee is given assurances that the grantor has not transferred the land to a third party through a grant deed. Additionally, they are warranted to have disclosed all known liens and restrictions on the title.

3. Quitclaim Deed

Any interest that the grantor may or may not have is transferred to the grantee. Quitclaim deed grantors don’t always have the legal right to transfer the property; there’s a potential they don’t even legally possess it. This kind of deed is typically not employed between parties who don’t know each other well due to uncertainty. It provides the least amount of legal protection and is more frequently utilized among family members.

4. Interspousal Transfer Deed

With this kind of transaction, the grantee does not pay transfer tax and acquires the interest of a spouse, including a perpetual interest in the communal property. Except in instances where it was a gift from one spouse to the other, the title is passed between married couples. This is not shared property and is thought to be separate. Couples most frequently use these deeds when they give the title to the spouse with superior credit in order to refinance at a lower interest rate.

5. Grant Deed in Lieu of Foreclosure

Grant Deed in Lieu of Foreclosure
Grant Deed in Lieu of Foreclosure

In this case, the bank that the borrower owes a loan to is frequently the grantee. The grantee receives the deed from the property owner. One of the reasons for doing this is to get rid of their mortgage obligation and stop the foreclosure process. When a property owner has exhausted all other choices, it’s sometimes the last resort. They might have accepted the reality that they will lose their house. Many people are ashamed of going into foreclosure; nevertheless, taking this less obvious path could help minimize any shame.

Chain of Title Searches

Large books known as grantee books, which are typically seen at county courthouses and recorder’s offices, are exclusively filled with grantees. Many of the grantee books utilized by title searchers to locate and record a chain of titles are older than 100 years. Grantee books contain information that is recorded alphabetically with entries beginning with the last name. The legal description, property address, list of improvements being conveyed, and transfer date are listed next to the grantee’s name. The grantee book contains a note about the book and a page of the deed that transferred the title.

The grantee book can be used to determine when and from whom the current owner of the property received the title if you know the name of the current owner but not the names of any previous owners or whether the title transfers were properly completed. All you would have to do is go backward in the grantee book’s public record. Once you locate the grantor-grantee deed, you can search for the grantor’s name in the grantee book to determine when that person obtained ownership.

Check Also:

What Is a Promissory Note?

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