Understanding the Role of a Grantee in Property Transactions
A grantee is the individual or entity that legally receives the title to a piece of property. In simpler terms, the grantee is the buyer of the property. Should the grantee decide to sell the property later on, they transition into the role of the grantor.
When most individuals purchase a home, the title is typically not transferred to them immediately. Often, the bank retains legal ownership of the property until the grantee fully pays off the mortgage.
The term grantee is formally used in the documentation that facilitates property transfer between a buyer and a seller. Many towns offer a grantor/grantee index that details the legal transfer of properties within a town or county, including the type of legal document used for such transfers.
Related Terms: grantor, property title, real estate transaction, property transfer, mortgage.
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### Who is the grantee in a real estate transaction?
- [ ] The person selling the property
- [x] The person buying the property
- [ ] The bank
- [ ] The real estate agent
> **Explanation:** In a real estate transaction, the grantee is the person who is legally receiving the title to the property, making them the buyer.
### What role does the bank often play in relation to the property title when there is an outstanding mortgage?
- [ ] The owner of the property without any payment
- [ ] The grantee
- [x] The legal owner until the mortgage is paid off
- [ ] The grantor
> **Explanation:** When there is an outstanding mortgage, the bank often becomes the legal owner of the property until the grantee has fully paid off the mortgage.
### What official term is used in the document that transfers property between the buyer and the seller?
- [ ] Title Deed
- [ ] Property Registration
- [x] Grantee
- [ ] Mortgage Note
> **Explanation:** The term "grantee" is used in the official document that transfers property between the buyer (grantee) and the seller (grantor).
### What kind of index can show the legal transfer of property between all buyers and sellers in a town or county?
- [ ] Mortgage Index
- [ ] Title Index
- [x] Grantor/Grantee Index
- [ ] Property Ownership Index
> **Explanation:** Most towns or counties offer a grantor/grantee index that shows the legal transfer of property between all buyers and sellers in that jurisdiction.
### When the grantee decides to sell the property, they then become the:
- [ ] Renter
- [ ] Title Holder
- [ ] Property Manager
- [x] Grantor
> **Explanation:** If the grantee decides to sell the property, they become the grantor as they would then be transferring the property title to another person.
### In what scenario is the title not immediately transferred to the grantee?
- [ ] When the property is a rental
- [ ] When there are multiple buyers
- [x] When there is an outstanding mortgage
- [ ] When the buyer lacks credit history
> **Explanation:** The title is often not immediately transferred to the grantee when there is an outstanding mortgage, and the bank holds the title until the mortgage is fully paid.
### What type of legal document often specifies the kind of transfer of ownership?
- [x] Deed
- [ ] Lease Agreement
- [ ] Mortgage Application
- [ ] Title Examination
> **Explanation:** The deed is the legal document that specifies the transfer of ownership from the grantor to the grantee.
### What term describes the official title of the document transferring property to another party?
- [x] Deed
- [ ] Lease
- [ ] Mortgage
- [ ] Promissory Note
> **Explanation:** The deed is the legal document used to transfer property ownership, legally identifying the grantee (buyer) and the grantor (seller).
### How does a town or county track legal ownership transfers?
- [ ] Through annual inspections
- [ ] By the homeowner's associations
- [x] With a grantor/grantee index
- [ ] Using a geographic information system (GIS)
> **Explanation:** A town or county tracks legal ownership transfers using a grantor/grantee index, which documents the transfer of property titles between individuals.
### In a basic property transaction, who typically provides the initial money to purchase the property?
- [ ] Real estate agents
- [ ] Government grants
- [x] The grantee (often through a mortgage)
- [ ] Title companies
> **Explanation:** The grantee typically provides the initial money to purchase the property, often using funds obtained through a mortgage.
