2/23/2024 0 Comments Mortgage transaction synonymThere are several types of deeds, and they provide different degrees of protection for the parties involved. If everything checks out, the grantor and grantee sign the deed to make the transfer official. The title search confirms who legally owns the property and whether there are claims or liens against it. If the transaction is a home sale, the grantee will typically order a title search before closing. Grantors and grantees represent the two sides of a real estate transaction, with the grantor transferring ownership or temporary use of their property to the grantee. The deed of lease outlines the terms and conditions of the lease agreement and ensures all parties understand their rights and responsibilities. The two parties are usually defined as a landlord (the grantor) and one or more tenants (the grantees). With a deed of lease, the grantor gives a grantee the right to temporarily use their property. If the property has an outstanding mortgage, the spouse who receives the property typically sells it or refinances the loan so it’s in their name only. It’s typically used in divorce cases where both spouses shared ownership of the property. This type of deed transfers property ownership from one spouse to the other. But the lender will need to agree in writing to waive that balance. In some cases, the grantor won’t be personally liable for the deficiency balance, which is the amount remaining on the mortgage. A homeowner may choose to take this step when they can no longer afford mortgage payments and want to avoid a lengthy foreclosure process. Deed in Lieu of ForeclosureĪ deed in lieu of foreclosure allows a homeowner to transfer property ownership back to their lender. Because the grantor is acting in an official capacity, they won’t be liable if the grantee faces claims against the title later on. Special Purpose DeedĪ special purpose deed is used when someone is transferring property ownership on behalf of another entity, such as an executor administering an estate. Because the quitclaim deed requires a level of trust, they’re typically only used in certain situations, like property transfers between family members. This type of deed offers no protection for the grantee if there are claims against the title later on. Quitclaim DeedĪ quitclaim deed transfers property ownership from the grantor to the grantee, but it doesn’t guarantee the grantor holds the property title or that the title can be transferred. There’s less protection for the grantee because the grantor won’t be liable for legal costs for defending the title later on. It guarantees that the grantor hasn’t transferred the property to anyone else and hasn’t encountered title problems while they owned the property. Grant DeedĪ grant deed also transfers property ownership from the grantor to the grantee. This type of deed is most often used by temporary owners, such as a bank that forecloses a property and puts it up for sale. The grantor won’t be liable for issues that arose from previous owners. The grantor pledges there are no encumbrances to the title- liens, for example-but only while they owned the property. Special Warranty DeedĪ special warranty deed also transfers property ownership from a grantor to a grantee. A home warranty is a contract that pays to repair or replace home systems and appliances if they break down after the home sale, usually for a period of one year. Both of these offer protection to the buyer, but in different ways. Some homebuyers confuse warranty deeds with home warranties. This protection covers the time before and during the grantor’s ownership. If the grantee discovers issues later on-like easements, tax liens or outstanding mortgages-the grantor must pay the legal costs to defend the grantee. The grantor confirms there are no undisclosed legal issues with the property title or the property itself. General Warranty DeedĪ warranty deed conveys property ownership from the grantor to the grantee, and it offers the highest level of protection for the grantee. There are different types of deeds to define the terms of the transfer, depending on the state where the grantor lives. This legal right is known as the “title,” and the transfer of title is granted using a legal document called a property deed. When property changes hands, the grantor transfers the legal rights to own, use and/or sell the property to the grantee. They acquire property from the grantor either through a home sale or rental. The grantee represents the other side of the real estate transaction: the buyer or the renter. The grantor may be any entity that owns and wants to sell or rent out their property. You might know the grantor as the seller in a home transaction or the landlord who rents their property to someone else. In a real estate deal, the grantor is the person who transfers ownership of their property to someone else-the grantee.
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