Are you a first-time investor in real estate? Whether you’re a buyer or seller of a property, you’ll have to sign a contract that finalizes any transaction you make with another party.

But before attaching your signature to a legal document, you’ll have to understand all of its contents and make sure you agree to every single one of them.

We know that legal jargon and other technical terms may be overwhelming to read about. So to make things easier to understand, let’s explore two simple but important terms you might find in some of these official documents. 

What Is a Grantor?

In most cases, a grantor is the owner and seller of the property. Any individual or entity who owns or has authority over the property and is transferring ownership to another is considered the grantor.

There are cases, though, when a piece of property is handed over to another person as a gift.

Following the same logic, the one who gives the property as a gift is the grantor. This may be seen in parents transferring their property to their children, whether as a gift or part of their inheritance.

There are also other cases where the grantor is a public official or person in authority. If a bank or lender acquires a property through foreclosure, they’re now considered the property owner.

Or let’s say the owner of the property has already died. If they left a will, the executor of the expressed will is considered the grantor of the property.

But if they left without a will, the court will appoint an administrator in charge of the property and will serve as its grantor.

What Is a Grantee?

A grantee, on the other hand, is the one who receives the property, whether they bought the property or got it as a gift. Grantees are to whom the grantor transfers the property title.

A grantee is more often an individual rather than an institution or any group of people. In most cases, a grantee is someone looking to own a property or invest in real estate.

But there are also cases where the grantee is a government or commercial institution. These entities can also sometimes buy land or property from the grantor.

And sometimes, the grantors hand over the property to an organization or the public as a gift.

Differences Between a Grantor vs. Grantee

In real estate transactions, simply put, the grantor is the seller, and the grantee is the buyer. The grant is the property being transferred.

Examples of Grantor vs. Grantee Relationships

1. Lessor-Lessee:

Two popular examples of a grantor vs. grantee situation regarding real estate exist. Aside from the transfer of ownership from the seller to the buyer, there’s also the lessor-lessee relationship.

In rental properties such as (but not limited to) condos or apartments, the landlord is considered the lessor. And the lessor is regarded as the grantor.

As a grantor, they’re giving temporary ownership rights to the tenant of their property in exchange for monthly rent.

And, as you might have guessed, the lessee (or the tenant) is the grantee in this relationship. As a lessee, they receive the right to possession of the said property.

As long as they abide by the terms and conditions of the lease or rental agreement, they can do what they want with the property.

2. Mortgagor-Mortgagee:

Another example is the mortgagor-mortgagee relationship.

In these cases, the mortgagor (usually referred to as the lender) is the grantor. And the mortgagee (the one who applies for the loan) is the grantee. The grant in this situation is the mortgage or loan itself.

3. Sponsor-Scholar:

There’s another example of a grantor vs. grantee relationship that’s not in real estate but is still common enough.

Scholarships are also considered grants. The one who sponsors the scholarship is the grantor. And the one who receives the scholarship is the grantee.

Investing in Real Estate

The grantor vs. grantee relationship is more common than we think. And although the terms may seem complicated, these concepts are easy to understand, even for a beginner.

Investing in real estate is the same. It may seem overwhelming initially, but with the right people helping you, you’ll get the hang of it quickly.

To recap, here’s what you need to know about a grantor vs. grantee relationship in real estate:

• A grantor is the seller and owner of the property.
• A grantee is the buyer and receiver of the property.
• A grant is a property being transferred.
• Some examples in real estate include a lessor-lessee relationship (or a landlord-tenant relationship) and a mortgagor-mortgagee relationship (or a lender-borrower relationship).

If you’re planning to buy a home soon and need financing, here’s a guide to finding the right mortgage broker for you. 

Invest In Edmonton’s Real Estate Market

You’ll also need the assistance of a real estate agent to make things easier for you, especially if you’re new to investing in real estate.

I’m Amrit Hunjan, your trusted real estate agent in town. I take pride in being Edmonton’s favourite real estate expert, and I can’t wait to assist you in finding your dream home.

Whether you’re a first-time buyer or a seasoned investor, I’ll be by your side throughout the process. Real estate can be overwhelming, especially if you’re new to it. That’s why I’m here to make things easier for you.

I have an in-depth knowledge of the local market, and I’ll use that expertise to find you the perfect property. From scouting potential homes to negotiating the best deal, I’ll handle all the details so you can focus on envisioning your future in your new home.

Don’t let the complexities of real estate deter you from achieving your homeownership dreams. Give me a call, and let’s get started on this exciting journey together.