Grantor vs Grantee: Know the Differences

If you’re a first-time home buyer or a seller, navigating the world of real estate can be a bit overwhelming. Sometimes, even intimidating! What with all the legal jargon and financial terms in your purchase agreement? These terms, with very specific meanings, can throw you off balance. Two of the most common ones that you may come across are grantor and grantee. So, what is the difference between a grantor vs grantee? Let’s familiarize you with what each of them means.

Keep in mind that any transfer of ownership rights will require you to have a good knowledge of the legal language in your contract. The last thing you’d want is to come across as naive in front of your real estate agent, attorney, or potential buyer/seller.

Grantor vs grantee: Who is who?

A transaction in real estate involves two parties: a grantee, who receives the property, and a grantor, who transfers legal ownership rights to another individual. The grantee usually checks who really owns a piece of property and if there are any money or legal issues connected to it through a title search. If everything looks good, both parties sign an agreement or a deed that clearly outlines their respective responsibilities.

Who is a grantor?

The grantor is the person selling something, like a house, to someone else. In real estate, they’re the ones giving up ownership of a property. This person could be a homeowner, a bank, a landlord, or anyone with land or property they want to sell.

Who is a grantee?

A grantee is a person who gets something in a deal, like a buyer. In real estate, the grantee is the one who gets the property after all the paperwork is done. They are the person or party getting the land or house, whether it’s a homebuyer, renter, or anyone taking control of the property.

Grantors and grantees vis-à-vis real estate deeds

The grantor is either selling or renting property to the grantee, who is paying for it. These deals are controlled by special contracts called deeds, which spell out the specific terms of the transaction. There are different types of deeds between both parties.

Warranty deed

A warranty deed is a legal document in real estate transactions to transfer ownership of a property from a seller (grantor) to a buyer (grantee). The deed assures the grantee that the property is free from any undisclosed liens, encumbrances, or legal claims against it. This means that if any issues with the title arise after the sale, the grantor is legally responsible for resolving them. And, may have to compensate the grantee for any financial losses.

There are different types of warranty deeds—general warranty deeds and special warranty deeds.

In a general warranty deed, the grantor promises that they have clear ownership of the property and that it’s free from any problems in the past, present, or future. In a special warranty deed aka grant deed in some states, the seller only guarantees that there haven’t been any problems with the property’s title during their ownership. It doesn’t cover any issues that might have existed before the seller owned the property or that arose after the sale. This type of warranty offers less protection to the potential buyer.

Quitclaim deed

A quitclaim deed is another way to give someone ownership of property, just like a grant deed. However, it doesn’t offer the same safety net because it doesn’t promise that the person giving the property (the grantor) actually owns it or that there are no problems with the ownership papers. So, if it turns out there are issues with the property’s ownership, the person receiving it (the grantee) doesn’t have any legal protection.

Quitclaim deeds are typically used in specific situations, such as transferring property between family members or into a trust. In cases where people who aren’t related or have no previous connection are involved, such as regular property sales, a quitclaim deed may not provide enough protection.

Deed in lieu of foreclosure

Foreclosure of a property is something most homeowners want to steer clear of, especially during tough times. A deed in lieu of foreclosure offers a way to possibly avoid the lender taking away your property forcibly. This arrangement means you willingly give your property back to the mortgage lender if you can’t make your payments. By doing this, you can get rid of your mortgage debt. Keep in mind that it won’t save your home. Although, it helps you skip the foreclosure process, which can harm your credit score and make it tougher to buy a new home later. It also spares both you and the lender from a long and complicated legal procedure.

Special purpose deed

A special purpose deed is when someone signs the deed, not as the property owner, but as a representative for someone else. Like an executor, power of attorney, or estate administrator. In this case, the person signing the deed isn’t responsible if any issues come up with the property.

Interspousal deed

An interspousal transfer deed is like a special paper that lets one person in a marriage become the owner of a property. People often use it when they’re getting a divorce and need to decide who gets the property. So, if the house belonged to both husband and wife, this deed helps one of them become the sole owner. After the transfer, the new owner might choose to get a new loan or sell the property.

Grantor vs grantee: Key takeaway

Grantors in the real estate industry are people selling or renting out a property. And, grantees are people buying or renting it. Deeds, which are legal documents, help protect both sides by defining who owns the property and who’s responsible for it, as well as any issues with it.

And, keep in mind that even if the different types of deeds offer some protection, a person buying a home may want extra protection by investing in title insurance.

Grantor vs grantee: Know your real estate terms, now! was last modified: July 23rd, 2025 by Ramona Sinha

Written by Ramona Sinha. October 1, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.