Grant Deed: How They Work
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Quick Facts — Grant Deed Lawyers
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- Clients helped: 29 recent grant deed projects
What is a Grant Deed?
A grant deed is a property deed that is used to transfer ownership of real property from a grantor (the owner of a property) to a grantee (the buyer). A grant deed is a legal document and is unique because it comes with its own set of rules.
When a grantor offers a grant deed after the sale of property, they are guaranteeing that there have been no problems with the title during the time that the grantor has held it, and that the property has not already been transferred to someone else.
How Grant Deeds Work
The purpose of a deed is to provide legal protection to buyers (called grantees) of real property. Grant deeds are most commonly used when a grantee is acquiring real property in a tax or foreclosure sale.
Since grant deeds don’t offer as much protection as other types of deeds, they are ideal for this type of scenario. Grantees get the benefit of purchasing property below market value and grantors take on less risk by making less guarantees. Grant deeds are considered better than quitclaim deeds , but less desirable than general warranty deeds .
Here is a quick overview of what a grant deed includes:
- Date of sale
- Names of grantor and grantee
- Property description
- Signature of grantor
- Notary public acknowledgement
- Warranty statements
Check out this article to learn more about how grant deeds work.
Grant Deed vs. Deed
Deeds are valuable to buyers because they provide certain protections regarding the sale of property. A grant deed is a deed that “grants” certain promises to the buyer:
- The property has not already been transferred to someone else
- There have been no issues with the title as long as the seller has held it
Grant deeds differ from deeds because they offer these protections. A deed offers no protection or guarantees that there will be no issues in the transfer of ownership. For a buyer, this means that there may be additional cost involved in the sale to resolve certain outstanding issues, such as:
- No legal right to own the property
- Property claims issues
- Liens on the property
- Zoning problems
- Mortgage note issues
Grant Deed vs. Deed Benefits
Grant deeds are ideal for buyers because they offer warranties on the property. When a buyer obtains a grant deed, they can be sure the property has not been transferred and that there are no current issues with the title.
Deeds are ideal for sellers because they absolve them of taking responsibility for real property. If a deed is exchanged for a sale and property claim issues arise, the seller is not obligated to provide a resolution. Deeds can be transferred despite issues with the title, so sellers could make money on the property without offering any protections to the buyer.
Here is an article about grant deeds and how they differ from deeds.
Image via Pexels by Emre Can
Do Grant Deeds Need to be Notarized?
Grant deeds are legal documents that govern what protections a buyer receives when a seller transfers ownership of real estate. Grant deeds only need to be notarized in accordance with state law. Check your state legislature’s website or connect with a real estate lawyer in your area to find out if a grant deed needs to be notarized in your state.
Getting a grant deed notarized is an important step to making the document legally binding. This is because a notary public must be physically present while both parties sign the grant deed in order to display their seal that certifies that the signatures are legitimate. In other words, you can think of a notary as a witness with special legal permissions to bear witness to legally binding matters.
Find out more about whether a grant deeds and notarizing by reading this article .
How to Get a Grant Deed
Obtaining a grant deed is simpler than you might think. First, you’ll need to find a piece property that you want to purchase. You can check your local newspaper’s classified ads, do a quick web search, or ask around to your friends and family.
One of the most common exchanges that involve grant deeds are foreclosure or tax sales. These sales are desirable because you have the potential to save money on the purchase agreement , since these types of sales usually happen at auctions. To find a property auction near you, check your local classified ads or check with your local government agency. Real estate agents can usually help, too.
A grant deed can be requested in the negotiations phase of a sale. Keep in mind that while a grant deed does offer some protections, it is not always the best option for the transfer of ownership of real property. General warranty deeds offer more protections and are the best option.
You should only pursue a grant deed when a general warranty deed is not on the table. If you want an extra layer of protection when obtaining a grant deed, you can try performing a deed search to get more details on the property you are interested in before closing the deal.
Check out this webpage to learn more about grant deeds.
Other Types of Deeds
Grant deeds are one of three types of deeds used to transfer real property. Each deed type is unique in its offerings and they are not all created equal. Understanding the different types of deeds out there is essential to making a sound deal when purchasing property.
General Warranty Deeds
General warranty deeds are hailed as the best property deeds out there. This is because a general warranty deed offers the highest level of protection of all property deeds. When a buyer is granted a general warranty deed, they are guaranteed:
- The owner owns the property
- The owner has the legal right to sell the property
- The property does not have any liens or encumbrances
- No defective title for the property exists
- The seller will furnish any document needed to make the title good
Quitclaim Deeds
Quitclaim deeds are the least desirable of all the property deeds. They make no guarantees to the buyer that there are no liens on the property, so when a buyer receives a quitclaim deed on a piece of property, they take on a considerable amount of risk, especially when compared to other deed types.
Some examples of risks taken when obtaining a quitclaim deed are:
- No legal recourse in the event of a title defect
- No warranties on the property title
- No promises regarding the property title
Quitclaim deeds are usually only recommended for scenarios where the buyer and seller know each other personally. They are often used when a transfer of ownership happens between family members, such as a grandparent transferring ownership of property to a younger generation before they die.
Check out this webpage to learn more about different types of deeds.
Get Help with a Property Deed
If you’re planning on purchasing real property and need the help of an expert, real estate lawyers can help. Post a project on ContractsCounsel today to get connected with real estate lawyers who specialize in grant deeds, general warranty deeds, and quitclaim deeds.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Meet some of our Grant Deed Lawyers
Stacey D.
I enjoy helping businesses of all sizes succeed, from start-ups to existing small and medium sized businesses. I regularly advise corporate clients on a variety of legal issues including formation, day to day governance, reviewing and drafting business contracts and other agreements, business acquisitions and sales, as well as commercial and residential real estate issues, including sales, purchases and leases. As an attorney licensed in both Michigan and Florida, I also advise clients on real estate issues affecting businesses and individuals owning real property in either state, whether commercial, residential or vacation/investment property. I also regularly assist nonprofit organizations in obtaining and maintaining tax exempt status, and provide general legal counsel on all matters affecting public charities, private foundations and other nonprofit organizations.
"She is clear, concise and insightful. She provided real value at a fair price. Do yourself a favor and hire her."
Max K.
Transactional attorney with experience in drafting, reviewing and negotiating contracts, licenses, leases, general business practices and dispute resolution. Licensed in Nevada, California and New York. I never charge for phone calls - happy to chat. www.linkedin.com/in/maxkelner
"I have been attempting to find an attorney for this project for months. I am extremely thankful I connected with Max and that he delivered."
Ryenne S.
My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.
"Ryenne was fantastic and answered all of our questions and provided clarity for us in negotiating a purchase agreement!"
Lolitha M.
Small firm offering business consultation and contract review services.
"Did great. She was responsive even after hours, will use again!!!"
Scott S.
I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.
"Very helpful and appreciated being able to go over the contract revisions and clarification questions I had, thank you!"
October 28, 2021
Oscar B.
Oscar is a St. Petersburg native. He is a graduate of the University of Florida and Stetson University, College of Law. A former US Army Judge Advocate, Oscar has more than 20 years of experience in Estate Planning, Real Estate, Small Business, Probate, and Asset Protection law. A native of St. Petersburg, Florida, and a second-generation Gator, he received a B.A. from the University of Florida and a J.D. from Stetson University’s College of Law. Oscar began working in real estate sales in 1994 prior to attending law school. He continued in real estate, small business law, and Asset Protection as an associate attorney with the firm on Bush, Ross, Gardner, Warren, & Rudy in 2002 before leaving to open his own practice. Oscar also held the position of Sales & Marketing Director for Ballast Point Homes separately from his law practice. He is also a licensed real estate broker and owner of a boutique real estate brokerage. As a captain in the US Army JAG Corps, he served as a Judge Advocate in the 3rd Infantry Division and then as Chief of Client Services, Schweinfurt, Germany, and Chief of Criminal Justice for the 200th MP Command, Ft. Meade, Maryland. He is a certified VA attorney representative and an active member of VARep, an organization of real estate and legal professionals dedicated to representing and educating veterans. Oscar focuses his practice on real small business and asset protection law.
October 28, 2021
Rachael D.
We help simplify every transaction and provide a superior level of customer service to create long lasting and trusted relationships with our clients. Our goal is to guide our clients with practical and zealous legal representation and eliminate the difficult nature of any legal transaction.
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