Grantee

Grantee Meaning

A grantee is the legal definition of someone who receives something from someone else. Often, it's a title or property, but it can also be a business arrangement or a scholarship. The one who parts with the asset to leave the ownership to the grantee is known as the grantor.

The term grantee is used in different situations to refer to the recipient of an asset or advantage of some kind. It can include property, money, educational benefits, investment benefits, etc. Therefore, it is important to specify the rights and limits of a grantee in legal documents to elucidate their role.

• A grantee is a person who receives something from another person, according to a legal document. It may or not be the final holder of the property, which depends on the kind of contract involved in the transaction.
• A grantee is the opposite of a grantor, the term used to describe the party that gives or sells something.
• These terms appear in several documents, but the deed is the most common. There are several kinds of deeds, including warranty, grant, quitclaim, and interspousal deeds.
• A grantee-grantor index is an official record kept by counties or municipalities that details grantees in the region.

Explanation

The grantee is essentially a legal term used in documents to determine the party who gets something during the transference of assets or titles. Legally speaking, they have the claim to the asset after the terms of the trade are complete.

All contracts that focus on the exchange of property or titles name one or more grantees, the grantor(s), the description of the asset involved in the transaction, and the terms of the deal.

Overall, contracts can diverge in numerous ways. So, it's impossible to predict the level of relationship between these two parties. But, most of the time, the grantee expects to get something from a second party named the grantor, which often expects something in return.

When it's a purchase, the person gets the asset in exchange for money. When it's a prize such as a scholarship, the person receives the prize as a reward for their academic performance or conduct. Finally, if it's an inheritance, the grantee only needs to accept the property.

Becoming a grantee also comes with a few responsibilities. For instance, if someone owns real estate, they are bound to pay taxes for it. Therefore it's important at all times to know who owns the property.

Documents where Grantee appears

Discovering who the grantee of something may not be as easy as it sounds in some cases, especially when the transactions were done via third parties. However, one can find this term in several legal documents, especially concerning purchases and trades.

Here are some examples of such documents:

• Deeds: They are the main document type for the transference of assets from one party to another.
• Investment proof: Every time someone invests in a stock, bond, or other investment, they will receive documents that will prove that they are the grantee to them.
• Scholarships or grants: These titles ensure that someone is eligible for the grant.

Deeds are the most common types of documents where a grantee appears. However, they're divided into several types:

• General warranty deed: In this case, the grantee gets the property from the seller and has the full right to sell it or use it as they wish.
• Special warranty deed: This document is used when the current grantor lets the grantee use the property during the time of their holding. But the new owner does not have full ownership of the asset.
• Quitclaim deed: On a quitclaim deed, the grantor does not promise the grantee that they have the right to sell the property. However, this form of a deed does not offer strong protection to the grantee and is less detailed than a warranty deed.
• Special purpose deed: Similar to a quitclaim deed. The grantee only has rights over the asset in special situations and does not have protection.
• Interspousal deed: In this case, a spouse transfers the property to the other, and they do not remain as shared owners anymore.

Example

A very well-known example of a grantee is when someone acquires real estate. For example, imagine that Gary just bought a new house. He is the grantee of the new property, while the last owner, Zack, is the grantor.

Both of them in this example have their responsibilities. For instance, Gary needs to pay for the house to keep his part of the deal, while Zack has to provide the house in return for the money. Here the seller is the grantor, and the buyer is the grantee. After the sale, the ownership of the house belongs to Gary, who can use whatever he wants with it.

Grantee-Grantor Index

The grantee-grantor index kept in the local county records lists out the deeds in a city and the parties who took part in the transactions.

This kind of document generally organizes all the deeds in the city, and one can browse it to discover more information about the transactions that happened previously. It contains information about the people who own all the properties in the county, including real estate. There will be a grantor index and a grantee index.

Most of the time, the lists will be organized alphabetically or chronologically, although that may change depending on the region where one is based. So, a person will need three pieces of information before they look at a grantee-grantor index. The grantee's name, the grantor, and/or the date (or at least the year) in which the transaction happened.

Older documents will probably be available only in old records, while newer ones will probably be available as microfilm or digital media, too. Also, bear in mind that older records may have much more limited access (or sometimes even be lost) than the newer ones.

Frequently Asked Questions (FAQs)

Recommended Articles

This has been a guide to Grantee & its meaning. Here we explain this concept in real estate & other deeds, along with grantee-grantor index & examples. You can learn more from the following articles –

• Grantor vs Grantee
• Warranty Deed vs Quitclaim Deed
• Blind Trust