A grant deed is a legal document used in real estate transactions to transfer ownership of property from the seller (grantor) to the buyer (grantee). It guarantees that the property has not been sold to someone else and is free from encumbrances or liens not disclosed in the deed.
This type of deed contains two main promises: that the grantor actually owns the property and has the right to sell it, and that the property is not burdened by undisclosed encumbrances.
It offers more protection to the buyer than a quitclaim deed, which makes no guarantees about the property's title, but less protection than a warranty deed, which includes additional guarantees about the title's status.
Real Estate Transactions: Grant deeds are commonly used in real estate sales to ensure a clear transfer of property ownership.
Title Insurance: In conjunction with grant deeds, buyers often purchase title insurance for additional protection against potential title issues not covered by the deed’s guarantees.
A common misconception is that grant deeds provide absolute protection against all title issues. In reality, they only assure against undisclosed encumbrances known to the seller. Buyers often need additional title insurance to protect against unknown issues.
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