Grantor vs Grantee in Real Estate

The relationship of a grantor and grantee in real estate is a fairly straightforward one. That said, there are a few things to know about the process that brings these two parties together. So, grantor vs grantee: what’s the difference, how do these two titles function, and what else do you need to know about selling your home this way?

Grantor vs Grantee

What Is a Grantor?

Let’s say you have a home you want to sell. When you find a buyer, you may enter into an agreement with that person. When you sign over the deed to this buyer, you become a “grantor.”

Key Takeaway: In real estate, a grantor is a party who sells and hands over the deed of a property to a buyer.

What Is a Grantee?

In terms of the scenario above, a buyer would act as the “grantee” there. This just means they are legally purchasing the deed from the grantor.

Key Takeaway: In real estate, a grantee is simply a buyer purchasing a property.

Other Important Documents and Facts

While the basic relationship between grantor and grantee may be simple, there are a few other especially important items to be aware of. These are the property deed, property title, and deed of trust. Each will come into play during the process of buying a home (grantee) or selling a home (grantor).

Property Deed

Your property deed is the piece of paper that proves your ownership of a property. It exists as a physical document that you can show to a judge, future buyer, or anyone else. A legally binding property deed must include the following (Investopedia):

• Name of buyer
• Name of seller
• Property description
• Signature of transferring owner

What’s the Difference Between a Property Deed and Title?

As is the case with the “grantee vs grantor” distinction, a property deed and title are closely related. However, there’s an important difference between the two. While the deed is a tangible document that you can hold in your hand, a property title is better described as a concept. As Atlantic Bay Mortgage Group puts it, “A title is the legal right to use and modify the property how you see fit, or transfer interest or any portion that you own to others via a deed.”

Deed of Trust

When using a deed of trust, both parties will agree to transfer the property title to a third party until the grantee has fully paid the loan amount. This third party is known as a “trustee,” and they must act impartially in the arrangement.

Deed of Trust vs Mortgage: What’s the Difference?

A deed of trust is similar to a typical mortgage, but it isn’t exactly the same. When it comes to a deed of trust in a grantor and grantee settlement, there’s a third party. Mortgages don’t require this.

With a deed of trust, both grantor and grantee agree to place the property in the hands of an impartial third party until the loan is paid in full.

Can I Sell With an Active Mortgage or Deed of Trust?

Some homeowners worry they won’t be able to sell a home because they are still making payments on it, but it’s actually very possible to sell a home with an active mortgage. This is also the case with a deed of trust. In fact, when it comes to your home in general, there’s always a way to transfer ownership.