Grantor vs. Grantee: What’s The Difference In Real Estate?

Grantor vs. Grantee. What’s the difference? When you’re buying or selling a home, legal terms can start flying fast — and some of them can be confusing. One of the most common pairings you’ll see in legal documents, including deeds and mortgages, is “grantor” and “grantee.”

But what do those terms really mean? Understanding the difference between a grantor and a grantee is essential in any real estate transaction. Whether you’re transferring ownership of a home or signing a deed of trust, these roles determine who’s giving and who’s receiving property rights.

Let’s break it down.

What Is A Grantor In Real Estate?

A grantor is the individual or entity that transfers ownership rights of a property to another party.

In most cases, the grantor is the homeowner or seller. When they sign a deed — like a warranty deed or quitclaim deed — they are legally transferring their interest in the property to someone else. The grantor can be:

• An individual
• A couple
• A business entity
• A trust or estate

For example, if you’re selling your home, you’re the grantor — you’re granting the rights of ownership to the buyer.

What Is A Grantee In Real Estate?

A grantee is the recipient of the property rights transferred by the grantor.

In most real estate transactions, the grantee is the homebuyer. They are receiving the legal interest or title to the property. Once the transaction is complete, the grantee becomes the new owner of record, and their name appears on the deed.

Just like grantors, grantees can be individuals or entities.

Grantor Vs. Grantee: Key Differences

Why It Matters

Understanding who is the grantor and who is the grantee matters for several reasons:

• Clarity in legal documents: You’ll see these terms in contracts, deeds, and mortgage agreements.
• Avoiding title issues: Misunderstanding roles can cause confusion in ownership or even legal disputes.
• Smooth closing process: Knowing your role ensures proper signatures and responsibilities during closing.

Bonus: Grantor And Grantee In Mortgages

In some states — including Virginia — real estate transactions involve a deed of trust instead of a mortgage. In this scenario:

• The borrower is still the grantor (granting a security interest in the home).
• The lender becomes the beneficiary, and a third-party trustee holds the title until the loan is paid off.

This makes it even more important to understand who’s who in the paperwork.

Final Thoughts

If you’re buying or selling a home, or even refinancing, knowing the roles of grantor vs. grantee helps you better understand the legal documents involved in your real estate transaction.

At ALCOVA Mortgage, we’re here to help you navigate every part of the home buying journey — from pre-approval to closing day. If you have questions about your mortgage or title documents, our team is just a phone call away.

Related Terms To Know:

• Deed of Trust
• Warranty Deed
• Quitclaim Deed
• Title Transfer
• Mortgage Documents

Ready to take the next step in your homeownership journey?
Contact ALCOVA Mortgage to get started today!