Grantor vs Grantee

Last Updated :

21 Aug, 2024

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Table Of Contents

Difference Between Grantor and Grantee

Grantor and Grantee are two parties involved in a typical real estate transaction, like lien, mortgage, or deed. The grantor is the one granting away or transferring the property rights to the grantee, who is the receiver.

For example, the landlord is the grantor in a rent or lease agreement, while the tenant is the grantee. The grantor is also called a first-party while the grantee is referred to as the second party in a transaction.

Difference Between Grantor and Grantee

Comparative Table

	Grantor	Grantee
Definition	The person or entity who is the owner or seller of a real estate asset	The entity who is a buyer, tenant, or borrower for a real estate property
Other titles	Usually, they are owner, seller, landlord, the lessor of the property	Could also include tenant, buyer, lessee, etc.
Property rights	Transfers property rights	Receives property rights
Deed	Signs at the bottom of the page	The deed is usually made in the name of the grantee
Investment	Sells or put options of the stock or other securities	Recipient of investments

What is Grantor?

In a legal contract concerning an exchange or transfer of an asset, the grantor is the person who owns the asset or happens to be the seller of the said asset. For example, the grantor would be the owner or lessor of a building or a house in the case of real estate. The grantor would normally transfer title and property rights to the grantee in a document known as the deed.

Almost always, the grantor has all legal rights on a piece of property before the signing of an agreement. The grantor holds the sole right to modify the assets as they please. They can either manage the property themselves or hire a trustee. Any remaining rights the grantor may have on the property will be mentioned within the clauses of the agreement.

In most legal drafts, the name of the grantor will be at the bottom of the page since they usually have to sign off the document over to the grantee.

What is Grantee?

The grantee is the individual or entity in a legal document who is usually the asset's buyer, borrower, or lessee.

In a legal deed, the grantee would be the one taking possession of a house or money or anything else in which the grantor transfers title in the deed. For example, in an agreement for a mortgage, the bank assumes rights over a real estate asset and is the grantee while the individual applying for the loan becomes the grantor. Unlike the grantor, the grantee has no right to modify the property or revoke the deed till the completion of a transaction.

Suppose a grantee who has taken possession of the house now approached a bank for a mortgage and had to put the house down as collateral. Now the roles would get interchanged, and the bank would become the new grantee.

In most cases, the person or entity receiving the property rights is the grantee, while the one transferring it is the grantor.