Contents
What does grantor mean on a loan?
Grantors are named in both deeds and mortgage documents. The grantor on a mortgage is the borrower. A grantor is a person who transfers real estate to another person or entity or who encumbers it by taking out a loan, creating a lien against the property. A grantor can convey many types of deeds.
Is the buyer the grantor or grantee?
The grantor is the owner, and the grantee is the buyer who is acquiring an equitable interest (but not bare legal interest) in a property. It’s essential that a deed clearly states the grantee, grantor, and a description of the property involved.
Who is the grantor and the grantee?
A grantee is the recipient of something, such as a college grant or real estate property. A grantor is a person or entity that transfers to another person or entity the interest or ownership rights to an asset. Legal documents, such as deeds, detail the transfer of assets between grantors and grantees.
Who is the borrower in a deed?
For example, in a typical home loan, the borrower is the person buying the home, the lender is a bank, and the trustee is a title company. The borrower makes monthly payments to the bank. If the borrower goes into default, the title company initiates a non-judicial foreclosure as the bank’s agent.
Are Grantor and trustee the same?
A grantor is the entity that establishes a trust and legally transfers control of those assets to a trustee, who manages it for one or more beneficiaries. In certain types of trusts, the grantor may also be the beneficiary, the trustee, or both.
What happens to a grantor trust when the grantor dies?
Upon the death of the grantor, grantor trust status terminates, and all pre-death trust activity must be reported on the grantor’s final income tax return. Concurrently, the deceased grantor’s estate will come into existence and also be considered a separate taxpayer for income tax purposes.
Who are the grantors and mortgagors in real estate?
When you transfer title to a property through a deed you also become the grantor. The party receiving a deed is the grantee. Mortgage or “lien theory” states require that deeds to real properties stay with their loan borrowers, legally called mortgagors.
What happens to the property of a grantor?
Grantees have limited protection when they receive property by a special warranty deed because there’s always the possibility that an issue predating the seller could come back to haunt them. 3 The grantor of a “grant deed” conveys their property with a guarantee that they have not concurrently sold the property to someone else.
What’s the difference between a guarantor and a borrower?
This person might also be known as the ‘principal borrower’, meaning the person who has borrowed the ‘principal’ or main loan amount. Guarantor: If you are a guarantor on someone else’s loan, you are promising to the lender that you will repay the borrower’s loan if the borrower does not repay.
Who is the grantee in a real estate transaction?
The grantee is the party who receives the transfer of the property after, in the case of sale, a closing occurs. In other words, the grantee is the buyer. Here the lender originates the mortgage while accepting a security interest in the property, and the borrower accepts its terms and agrees to repay.