“Grantor” is a legal term used in real estate to refer to the seller of a property, such as a commercial building or a home. During a sale, a grantor can convey his title to the buyer, who is also called the “grantee”, using a legal instrument known as the deed, which can be modified by any of the two parties to include rules and agreements on how the property can be sold, reclaimed, or used.
The type of deed a grantor can convey varies according to the state you are in. There is the:
- General warranty deed, where a grantor confirms that a title is marketable, which means that there is no existing liens or other problems that might hinder a sale.
- Grant deed, where a grantor guarantees that he has not sold the property to someone else concurrently and that there are no additional encumbrances on it.
- Special warranty deed, where a grantor bears no obligation for any title defect the property had before he owned it.
- Quitclaim deed, where a grantor makes no guarantees about the title or his legal right to convey it.
To know which type of deed a grantor is conveying, it is best to sit down with a closing attorney during your negotiations. This person will also make sure the deed documenting the title transfer is recorded for a certifiable proof that a legal transfer has occurred.