What’s the difference between a grantor and a grantee? 

When you buy or sell a home, you’ll often come across terms like “grantor” and “grantee.” These aren’t just fancy legal terms; they identify who is transferring and who is receiving property rights. 

In every real estate transaction, whether it’s a home purchase, a family gift or a property transfer during refinancing, understanding who the grantors and grantees are ensures a smoother process.  

Are you ready to move forward on a home loan? Owning offers customized loan options that fit your needs. 

What is a grantor?

The grantor is the person or entity that owns the property and is transferring ownership rights.  

Think of the grantor as the “giver” of the property title in any legal document on which ownership changes hands. 

If you’re selling your home, you’re the grantor in that transaction. 

What is a grantee? 

A grantee is the person or entity receiving ownership of the property. For example, if you’re buying a house, you’re the grantee because you’re the one receiving property rights from the grantor.   

What is a grant deed? 

A grant deed certifies that the property hasn’t been transferred to anyone else and that no undisclosed liens or encumbrances exist on the title. 

Although it offers fewer protections than a warranty deed, it’s a popular choice in many real estate transactions.  

How do a grantor and grantee factor into real estate deeds? 

The grantor’s main role is to transfer ownership to the grantee through a property deed. Ownership transfers when the grantor signs a deed, officially handing over property rights to the grantee. 

A grantor must provide an accurate and truthful deed. For example, if an easement allows someone else to use the property, this is required to be disclosed. 

Usually, it’s the grantee’s responsibility to record the deed with the county, which makes their ownership official. Recording the deed protects the grantee by showing clear grantor ownership history because public records establish the ownership rights of the homebuyer or borrower. 
 

What is a real estate encumbrance? 

An encumbrance is a restriction on a property that affects how it can be used or transferred. Think of it as a note that sticks with the property and can affect both the grantor and grantee in different ways.  

Common encumbrances include easements and liens, and it’s important for both parties to know about them before a transfer deed is signed. 

How do easements and liens factor into real estate encumbrances? 

An easement grants someone other than the homeowner legal rights to use part of the property for a specific purpose.  

For example, a utility company may have an easement to install power lines across a section of land. While easements don’t affect full ownership rights, they can limit how certain parts of the property are used by both the current and new owner. 

A lien is a legal claim placed on a property, often used as collateral to ensure the repayment of a debt. When a lien is present, it means the grantor cannot fully transfer clear ownership rights to the grantee until the debt is settled.  

For example, if there’s an unpaid mortgage or tax debt associated with the property, a lien may be filed, and the grantor must fulfill this debt before completing the property transfer.  

Liens can affect the grantee also because they may become responsible for addressing the lien if it remains undisclosed or unresolved after the transfer. 

How can I start the mortgage process today? 

One initial step is getting a mortgage pre-approval. This helps you discover how much a lender may allow you to borrow. 

Beyond the purchase price, remember to factor in additional costs like closing fees, home inspections and moving expenses. These can add up, but knowing what you need upfront can help you plan more accurately.  

If you’re ready to explore your homeownership options, apply for a mortgage pre-approval today! 

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.}   

_{All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Owning does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Owning. Owning, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.}