Understanding the Role of a Grantor in Real Estate Transactions§
A grantor plays a pivotal role in real estate transactions, acting as the lender or issuer of the mortgage, essentially the seller of the property. The term ‘grantor’ is officially used on titles during the transfer of property between two distinct entities or parties. Typically, a grantor transfers the property to the grantee, or buyer, in return for an agreed-upon payment.
In most cases, the grantee does not make this purchase directly from the grantor with their own funds. Instead, they usually utilize a loan from a bank or mortgage company. This financial institution pays the grantor, allowing the grantee to acquire the property. It is then up to the grantee to repay the bank or mortgage company’s loan through regular monthly installments.
To keep track of property transfers, many communities maintain a grantor/grantee index. This index lists all property transfers that occur within a given city or town, providing a structured way to trace and verify the conveyance of property titles.
By understanding the role and responsibilities of a grantor, both buyers and sellers can better navigate the complexities of real estate transactions.
Related Terms: grantee, title transfer, mortgage lender.
