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.
If you are purchasing a piece of land, a building or another form of real property (or you are expecting to receive a piece of real property as a gift) you may want to consider completing a grant deed before your ownership interest transfer is complete. Grant deeds are designed to protect the interests of individuals who are receiving a new ownership interest in real property, either through the sale or gift of that property. In a nutshell, a grant deed helps to ensure that buyers are only investing in on ownership interest transfer involving property not subject to liens, debts or other legal restrictions. Similarly, a grant deed helps to guarantee that sellers will not transfer the ownership interest in question to another party before the transaction is completed.
- 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.
If you are either purchasing or being gifted a piece of real property, you may use a grant deed to help safeguard your interests related to the transfer of an ownership interest in that property from another party to you. This legal tool helps to ensure the integrity of the sale or gift transfer by articulating assurances that the property interest will not be transferred to someone else and that the property is not tied to liens, debt or other restrictions. Similarly, if you are looking to sell or gift real property to another and want to provide that person, business or trustee with assurances of the integrity of the sale, you can use a grant deed to accomplish these aims as well.
It is important to note that grant deeds are most often utilized in gift transactions or sale transactions paid in cash. In other words, grant deeds are not generally used when the transfer of property involves a mortgage or loan-specific financing.
Grant Bargain and Sale Deed
Interspousal Transfer Grant Deed
Grant Deed Verification Form