What Is a Grantor?

Definition and Examples of a Grantor

A grantor is a person who transfers ownership of real estate to another person or entity. A grantor can convey many types of deeds. Grantors are named in both deeds and mortgage documents. The types of deeds that can be conveyed (transferred) depend on the state where the grantor lives. Each type of deed has its own rules and guidelines; what's recognized in Iowa might not be accepted in California.

When you sell your home, you sign the deed to the buyer. You're conveying ownership of your home to the buyer. That makes you the grantor and the buyer the grantee in the transaction.

How Does Granting Ownership Work?

A grantor transfers property ownership by granting it to another person through a property deed. Transferring ownership in a real estate transaction is complex due to the laws involved.

If you're selling a home, you'll likely need a real estate lawyer to help you draw up the necessary contracts so that you grant the house to the buyer properly. You'll fill out the paperwork for the transaction, which includes a property deed transfer request to the buyer, who is the new owner. You've assumed the role of the grantor by selling your home to someone else.

A deed must identify both the grantor and grantee and include a full description of the asset in question. Deeds with vague language can confuse and pave the way for one or both parties to file a lawsuit.

Closing attorneys usually ensure that deeds documenting the transfer of a title are recorded at the county courthouse in the county where the property is located. That serves as proof that the transfer was legal.

Luckily, a deed is not set in stone for all time. The grantor or grantee can modify them to include covenants and other rules stating how an asset can be used, sold, or reclaimed. You should always make sure to obtain a title insurance policy when you're buying a home, just in case.

In addition to real estate deeds, other documents require the identity of these parties as well. Landlords and renters have grantor and grantee relationships; sellers and buyers of motor vehicles also have deeds.

You'll also see grantors and grantees when dealing with wills or financing contracts. Some business arrangements and partnerships can require a grantor and grantee relationship, but that isn't as common.

Types of Deeds

Deeds can convey and confirm many issues. The four common types of deeds are general, special, grant, and quitclaim.

General Warranty Deed

A grantor who conveys a "general warranty deed" confirms that the title is good and can be sold. They claim that no liens exist on the title that might prevent them from selling the home and that they have the legal right to sell it.

A general warranty deed protects a grantee (the person buying the home) against claims to the title, dating back to a home's origins. It offers buyers the most protection in a real estate sale, but not all states allow these deeds.

Special Warranty Deed

A "special warranty deed" grantor takes no blame for any claims placed on the title for periods before which they owned the property. However, grantees are not as protected when buying a home with a special warranty deed. As a result, there's a chance that an issue the seller wasn't aware of would need to be addressed.

Grant Deed

The grantor of a "grant deed" transfers a home with a guarantee that they have not sold the house to someone else at the same time. They also guarantee that there are no other liens or encumbrances on it besides those they told the grantee about (meaning it's unencumbered). A grant deed contains the names of the grantor and grantee. It also describes what's being transferred (for example, the tract number, lot number, and address).

Quitclaim Deed

A "quitclaim deed" grantor makes no guarantee that they have any legal right to convey the property. They might not even legally own it. For example, you could buy the Statue of Liberty and "take ownership" via a quitclaim deed. However, that doesn't mean you'll own it because the seller neither owned nor had the right to transfer it to you.

Quitclaim deeds are not used by grantors and grantees who don't know each other very well. Instead, this type of deed is most often used among family members to pass estates to heirs; or in divorce cases where one spouse gives up ownership of an asset to the other.