Everything Homebuyers Need to Know About Grantors and Grantees in Real Estate

Buying property involves navigating unfamiliar legal terminology. Two terms that often confuse buyers are “grantor” and “grantee”—words that define the two parties in any real estate transaction. Understanding what these mean and how they interact through property deeds can protect your interests and help you make smarter decisions when purchasing or renting.

Who’s Who: The Grantor and Grantee Explained

In any property transaction, there are always two sides. The grantor is the party transferring ownership—typically the seller in a home purchase or the landlord in a rental situation. The grantee is on the receiving end: the buyer or tenant acquiring rights to the property.

Think of it this way: when you buy a house, you become the grantee. The previous owner who sells it to you is the grantor. If you’re renting an apartment, your landlord acts as the grantor, granting you temporary usage rights, while you’re the grantee.

How Property Ownership Actually Transfers

When the grantor passes property to the grantee, they’re transferring something called “title”—the legal right to own, use, and sell the property. This transfer doesn’t happen with a handshake. It requires a formal legal document: a property deed.

The type of deed used determines how much protection each party receives. Before closing any deal, the grantee typically orders a title search to verify who legally owns the property and whether any claims or liens exist against it. Once both parties confirm everything is clear, they sign the deed, and ownership officially transfers.

The Different Types of Deeds and What They Mean for You

Not all deeds are created equal. The protection they offer varies significantly, and understanding the differences could save you from major headaches down the road.

General Warranty Deed: Maximum Protection

A general warranty deed offers the strongest protection available to the grantee. The grantor explicitly confirms there are no hidden legal issues with the property title. If problems emerge later—such as easements, tax liens, or outstanding mortgages—the grantor must cover the legal costs to defend the grantee’s interests. This coverage extends back to before the grantor even owned the property.

Many buyers confuse warranty deeds with home warranties. While both protect the buyer, they work differently. A home warranty is a service contract that covers repairs or replacement of appliances and home systems within a set period, usually one year after purchase.

Special Warranty Deed: Limited Liability

With a special warranty deed, the grantor promises that no title encumbrances (like liens) exist during their ownership period. However, the grantor accepts no responsibility for issues created by previous owners. Banks and other entities that foreclose properties frequently use this deed type when selling foreclosed homes.

Grant Deed: Basic Assurance

A grant deed transfers ownership and guarantees that the grantor hasn’t sold the property to anyone else and hasn’t encountered title problems while owning it. The protection is less comprehensive than a warranty deed—the grantor won’t pay for legal defenses if title issues surface after the sale.

Quitclaim Deed: Minimal Security

A quitclaim deed transfers whatever interest the grantor has in the property, but makes no guarantees about whether the grantor actually holds valid title or can transfer it legally. This deed offers zero protection if someone later claims ownership rights. Because it relies entirely on trust, quitclaim deeds typically appear only in specific situations, such as transfers between family members.

Special Purpose Deed: Official Transfers

When someone transfers property on behalf of another entity—an executor managing an estate, for example—a special purpose deed applies. Since the grantor operates in an official capacity rather than as a personal owner, they’re shielded from liability if the grantee later faces title claims.

Deed in Lieu of Foreclosure: Avoiding the Process

This deed allows homeowners facing financial hardship to return the property to their lender instead of going through foreclosure. Sometimes the grantor avoids personal liability for the deficiency balance (remaining mortgage amount), provided the lender agrees in writing to waive it.

Interspousal Deed: Divorce Transfers

Used primarily in divorce settlements, this deed transfers property between spouses. If a mortgage still exists on the property, the spouse receiving it typically refinances or sells to assume sole responsibility.

Deed of Lease: Temporary Rights

Unlike other deeds that transfer ownership, a deed of lease grants temporary usage rights. The grantor (landlord) and grantee (tenant) use this document to outline lease terms, rights, and responsibilities.

Why Understanding Grantors and Grantees Matters

The grantor-grantee relationship forms the foundation of every real estate transaction. Different deed types provide varying levels of protection, so knowing which one you’re signing matters enormously. Even when purchasing a deed offering substantial protection, many buyers add title insurance as an extra safeguard against unexpected property issues or claims that weren’t caught during the initial title search.

Before signing any deed, ensure you understand exactly what protections it offers and what liabilities each party assumes. This knowledge transforms you from a confused buyer into an informed participant in the transaction.