Grantee v grantor is an important distinction in many instances of transferring assets. This includes real estate, estate planning, and more.
In this article, we will discuss the differences between grantee and grantor, their specific responsibilities, and answer common questions we receive on the topic.
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Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Grantee v Grantor
- What Is the Responsibility of a Grantor?
- Grantees Responsibilities
- Quitclaim Deed vs Grant Deed
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Grantee v Grantor
The main difference between a grantee and a grantor is that a grantee refers to an individual who will become the owner of an asset while the grantor is the person that will relinquish ownership of an asset. The roles of the grantee and grantor primarily arise for estate planning purposes, to facilitate the distribution of assets after the passing of the grantor.
Not surprisingly, grantee and grantor also appear in real estate transactions, when setting up trusts, as well as in the management of foundations. However, it is possible for the relationship of the grantee and the grantor to appear in other areas where the transfer of assets are involved.
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What Is the Responsibility of a Grantor?
The responsibility of a grantor will ultimately depend on the particular situation in which the term is being used. But, generally speaking, a grantor refers to an individual that is contributing assets for the benefit of another person or entity now or in the future.
In other words, the grantor is responsible for initiating the transfer of an asset or assets in accordance with their wishes. This can apply to a sale of an asset or to the commitment to distribute assets at the time of the grantor’s death.
Here is a closer look at the specific responsibilities of a grantor.
Responsibilities of a Grantor
- Agree to a change in ownership of an asset they own
- Take the necessary steps to contribute to the asset
- Sign all related documents, such as a trust or property deeds
Grantees Responsibilities
Grantees responsibilities will also depend on the particular situation in which the term is being used. But, generally speaking, grantee refers to the recipient of ownership in an asset while grantor refers to the individual distributing ownership of an asset.
For example, in the case of a real estate deed, the grantee is the person who will receive the real estate. On the other hand, in the case of scholarship or grant awards, the grantee is the person receiving the funds.
Here is a closer look at the responsibilities of grantees in the case of property ownership and deed transfers.
Property Ownership
Property ownership is ultimately determined by who holds legal title to the deed of a property. Depending on the jurisdiction, the title must be registered with local authorities.
Who Is the Grantee on the Deed?
The grantee on the deed refers to the individual buyer (or new owner) of a property. In addition to the grantee, the grantor will also be referenced, which refers to the individual selling the property.
Quitclaim Deed vs Grant Deed
The main difference between a quitclaim deed and a grant deed is that a quitclaim deed is used between related parties while a grant deed is commonly used between third parties. In other words, quitclaim deeds are typically used between family members while grant deeds are typically used between parties where there is no familial relationship.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into grantee v grantor. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Is the Grantor the Seller?
Yes, the grantor is the seller on a deed in the case of a transfer of property. When there is a mortgage involved, the grantor is the borrower to whom financing has been provided for the purpose of purchasing the property and who intends to now sell the property to another individual.
Does Grantor Mean Buyer or Seller?
Grantor means the seller of a property on a deed while the buyer of the property is referred to as the grantee on a deed. The grantor is the individual who will sign the document at the time of transferring the property.
Is Grantee the Same as Beneficiary?
Yes, grantee is the same as beneficiary in most cases. However, it does depend on the specific context in which the term is being used. For example, in the context of a deed transfer, the grantee may also be referred to as the buyer instead of the beneficiary. That said, in the case of estate planning when a grantor has designated certain assets for the benefit of certain individuals, these individuals are the beneficiaries.
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