A grant deed is a legal document that is used to transfer real estate or other interests in land from one owner to another. It is very similar to a warranty deed in form and substance, but differs in a few important ways. This article will explain the key characteristics of a grant deed, how it is used, and how it is different from a typical warranty deed.
What Is Different About a Grant Deed?
A grant deed is similar to a warranty deed in that it conveys interests in land and includes promises about the ownership of the property. However, a grant deed is much less comprehensive than a warranty deed. A grant deed only includes promises about the title to the property that has been made by the person transferring the property (the grantor). This means that with a grant deed, the buyer (the grantee) does not receive any promises about any defects in the title that existed before the grantor acquired the property. In addition, a grant deed does not contain any guarantees about the condition of the property.
When Should You Use a Grant Deed?
Grant deeds are most commonly used when someone is transferring a property that has already been properly titled and that does not have any issues or defects with its title. It is ideal for situations where the buyer already has a good understanding of the title and is satisfied that there are no title issues that need to be resolved. For example, if someone is giving an inheritance or a gift to another, or when real estate is being conveyed from one party to another as part of a separation agreement, a grant deed is often used.
Conclusion
A grant deed is an important legal document that conveys interests in land from one owner to another. It is similar to a warranty deed, but much less extensive in the promises it makes to the buyer. Grant deeds should primarily be used when the buyer already has a good understanding of the title and is satisfied that there are no title issues that need to be resolved.