Understanding Deeds: Who's the Grantor and Who's the Grantee?

Buying or renting property involves more legal jargon than most people realize. Two terms that constantly pop up in real estate transactions are “grantor” and “grantee”—but what does it actually mean to be a grantee on a deed, and why should you care? Simply put, these roles define who’s transferring property and who’s receiving it.

The Basics: Seller vs. Buyer

In any property deal, there are always two parties. The grantor is the one letting go of the property—think of them as the seller in a home purchase or the landlord in a rental situation. The grantee is the one acquiring it: the buyer or tenant. Their entire relationship, along with what each party can and can’t do with the property, gets documented in a legal instrument called a deed.

What Exactly Is a Grantee on a Deed?

A grantee represents your side if you’re the one receiving property. Whether you’re purchasing a home or signing a lease, you’re the grantee—the recipient of ownership rights or temporary usage rights from the grantor. The deed serves as proof that this transfer is official and legally binding.

When a grantee takes possession, they’re acquiring what’s called “title” to the property. But here’s the catch: not all titles are created equal. Different deed types offer different levels of protection, which directly affects what liability the grantee has if problems surface later.

The Deed Transfer Process

When property changes hands, the grantor uses a deed to formally transfer their legal rights to the grantee. This includes the right to own, use, occupy, and sell the property. Before signing anything, most grantees order a title search to confirm the grantor actually owns what they’re selling and whether any claims or liens exist against it.

Seven Types of Deeds and What They Mean for You

Warranty Deeds: Maximum Protection

A general warranty deed is the gold standard for grantees. The grantor guarantees that the title is clean—no hidden legal issues, easements, or tax liens lurking in the background. If problems emerge after the sale, the grantor covers the legal costs to defend the grantee’s ownership. This protection extends back through all previous owners.

Many homebuyers mix this up with a home warranty, which is different. A home warranty is insurance that covers repairs to appliances and systems after purchase, typically for one year. A warranty deed, on the other hand, protects the title itself.

Limited Protection Deeds

A special warranty deed narrows the grantor’s liability. They only guarantee there are no title problems while they owned it—issues from previous owners aren’t their responsibility. Banks often use these when selling foreclosed properties.

Grant deeds sit in the middle ground. The grantor confirms they haven’t sold the property twice or created title issues themselves, but they won’t pay legal costs if the grantee later needs to defend their ownership.

Quitclaim Deeds: Buyer Beware

A quitclaim deed offers zero protection to the grantee. The grantor makes no promises about whether they actually own the property or if the title can even be transferred. These are typically used only between family members or in situations where trust is already established—not for standard real estate transactions.

Specialized Deed Structures

A special purpose deed is used when someone transfers property on behalf of another entity, like an estate executor. A deed in lieu of foreclosure lets struggling homeowners transfer the property back to their lender instead of facing foreclosure proceedings. An interspousal deed moves ownership between spouses, often in divorce settlements.

For rentals, a deed of lease defines the landlord-tenant relationship and outlines usage rights and responsibilities.

Grantee Protection Matters

The type of deed significantly impacts your risk as a grantee. Even with protective deeds, many buyers purchase title insurance for an extra layer of security against undiscovered problems or claims that surface years later. A title search before closing is standard practice—it’s your chance to spot problems before they become your problem.

Understanding your role as a grantee and the protections your specific deed offers is crucial before finalizing any real estate transaction.