A grant deed conveys property from one owner to another with a guarantee that it has not been sold to anyone else and there are no leans or restrictions on the property not disclosed to the buyer. full description
- Selling property that you can guarantee has no break in title, nor any liens or encumbrances that you are not aware of
- Buying property with a guarantee of good title and disclosure of all encumbrances affecting the land.
A deed is the legal instrument that proves ownership in a piece of property. Deeds must be recorded in the public land records to create a ledger of past and present ownership. There are several types of deeds, and deciding which deed is appropriate for you to convey your property depends upon the facts and circumstances of the exchange.
A grant deed is used in the conveyance of real property when the grantor – the person selling or gifting the land – can make two specific guarantees regarding the chain of title on the property. First, a grant deed guarantees that the property has not been sold to anyone else – a surprisingly common way chain of title is broken for a property. Second, the grant deed assures the person receiving the property that there are no liens, easements, or other restrictions on the property other than those already disclosed. If the grantee – the person buying or receiving the land as a gift – discovers that there are easements or other restrictions on the property that she was not aware of, she may be entitled to compensation from the grantor.
In order to ensure that chain of title stays good for a grant deed, the deed should be recorded as soon as it is executed. Also, if you are involved in a real estate transaction where the seller is offering a grant deed, it is best to consult with a title insurance company and an attorney before completing the sale.