Grant Deed
What Is a Grant Deed?
A grant deed is a legal document used to transfer the ownership of real property. A grant deed demonstrates that the buyer (grantee) holds title and retains possession of the property. However, this type of deed does not protect the buyer from any debts or liens the seller (grantor) may have on the property.
To be legally valid, a grant deed must include a legal description of the property, the full names of the grantor and grantee, language identifying the conveyance of the property, and the grantor’s signature.
Other details may be included depending on the specifics of the sale. Also, some states require a notary public to witness the document's signing.
What Is a Grant Deed in Real Estate?
A grant deed is often used in real estate transactions.
The document, which transfers property ownership from one party to another, designates “good title,” which means the grantor pledges they have the legal right to transfer ownership to the grantee and that the property is not subject to any outstanding liens or other encumbrances.
A grant deed is often used in the following situations:
- foreclosure sale
- court proceeding (including a divorce)
- tax sale
- cash purchase
- estate planning
Grant Deed Vs. Other Types of Deeds
Here is a look at how grant deeds compare with other types of property deeds.
Grant deed vs. quitclaim deed
Both grant deeds and quitclaim deeds are documents used to warrant the transfer of property from seller to buyer. However, there is a key difference.
A grant deed holds that the property was unencumbered when the grantor held the title (except as noted in the deed).
A quitclaim deed (also called a non-warranty deed) carries no such protection.
Grant deed vs. warranty deed
A general warranty deed provides more protection to the grantee than a grant deed or a quitclaim deed. A general warranty deed states that the grantor holds good, clear title to the property. This type of deed is used in most real estate deed transfers.
Grant deed vs. deed of trust
While a grant deed is used to warrant a change in ownership of real property, a deed of trust is a loan document used to secure a debt to real property at the time of purchase.
Grant deed vs. tax deed
A grant deed conveys the ownership of real property from seller to buyer. A tax deed transfers ownership to a government agency when the owner fails to pay property taxes. Tax deed property sales are typically held at auctions.
Grant Deed FAQs
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Is a grant deed proof of ownership?
Yes. A grant deed serves as legal proof of the ownership transfer of real property. It gives the new owner the right to sell or transfer the property, and it warrants that the property has not already been sold to another party.
Not all states use grant deeds, so it is essential to check with your county recorder’s office.
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What is an example of a grant deed?
A grant deed contains the following components:
- date
- legal names of the grantor and grantee
- description of the property
- signatures of grantor and witnesses as required by state law
A grant deed also includes a statement that declares what warranties are included. Here is an example of a grant deed statement:
"The grantor/owner warrants that this property is free and clear from any and all liens and encumbrances incurred during their ownership except for taxes due for current and subsequent years and any restrictions or easements of record."
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Do grant deeds vary from state to state?
Laws on grant deeds vary from state to state. To find out about the specific requirements for your local area, consult your local Assessor or County Recorder’s office.
What Is a Grant Deed?
A grant deed is a legal document used to transfer the ownership of real property. A grant deed demonstrates that the buyer (grantee) holds title and retains possession of the property. However, this type of deed does not protect the buyer from any debts or liens the seller (grantor) may have on the property.
To be legally valid, a grant deed must include a legal description of the property, the full names of the grantor and grantee, language identifying the conveyance of the property, and the grantor’s signature.
Other details may be included depending on the specifics of the sale. Also, some states require a notary public to witness the document's signing.
What Is a Grant Deed in Real Estate?
A grant deed is often used in real estate transactions.
The document, which transfers property ownership from one party to another, designates “good title,” which means the grantor pledges they have the legal right to transfer ownership to the grantee and that the property is not subject to any outstanding liens or other encumbrances.
A grant deed is often used in the following situations:
- foreclosure sale
- court proceeding (including a divorce)
- tax sale
- cash purchase
- estate planning
Grant Deed Vs. Other Types of Deeds
Here is a look at how grant deeds compare with other types of property deeds.
Grant deed vs. quitclaim deed
Both grant deeds and quitclaim deeds are documents used to warrant the transfer of property from seller to buyer. However, there is a key difference.
A grant deed holds that the property was unencumbered when the grantor held the title (except as noted in the deed).
A quitclaim deed (also called a non-warranty deed) carries no such protection.
Grant deed vs. warranty deed
A general warranty deed provides more protection to the grantee than a grant deed or a quitclaim deed. A general warranty deed states that the grantor holds good, clear title to the property. This type of deed is used in most real estate deed transfers.
Grant deed vs. deed of trust
While a grant deed is used to warrant a change in ownership of real property, a deed of trust is a loan document used to secure a debt to real property at the time of purchase.
Grant deed vs. tax deed
A grant deed conveys the ownership of real property from seller to buyer. A tax deed transfers ownership to a government agency when the owner fails to pay property taxes. Tax deed property sales are typically held at auctions.
Grant Deed FAQs
-
Is a grant deed proof of ownership?
Yes. A grant deed serves as legal proof of the ownership transfer of real property. It gives the new owner the right to sell or transfer the property, and it warrants that the property has not already been sold to another party.
Not all states use grant deeds, so it is essential to check with your county recorder’s office.
-
What is an example of a grant deed?
A grant deed contains the following components:
- date
- legal names of the grantor and grantee
- description of the property
- signatures of grantor and witnesses as required by state law
A grant deed also includes a statement that declares what warranties are included. Here is an example of a grant deed statement:
"The grantor/owner warrants that this property is free and clear from any and all liens and encumbrances incurred during their ownership except for taxes due for current and subsequent years and any restrictions or easements of record."
-
Do grant deeds vary from state to state?
Laws on grant deeds vary from state to state. To find out about the specific requirements for your local area, consult your local Assessor or County Recorder’s office.