Understanding Grant Deeds: What They Are and How They Work

A Grant Deed is a crucial legal document in real estate transactions, especially for transferring property ownership from one party to another. This type of deed offers certain assurances to the buyer, making it a widely used instrument in property sales. Here’s an in-depth look at a Grant Deed, its components, benefits, and how it works in real estate.

What Is a Grant Deed?

A Grant Deed is a legal document used to transfer ownership of real property from the grantor (seller) to the grantee (buyer). This deed conveys the property and includes certain guarantees about the property’s status. It ensures that the grantor has the legal right to transfer the property and is free of undisclosed encumbrances or claims.

Critical Components of a Grant Deed

Grantor and Grantee Information:
- The deed must identify the grantor, who is transferring the property, and the grantee, who is receiving it.
Legal Description of the Property:
- A detailed legal description of the property being transferred is included. This description is precise and distinct from a street address, often involving lot numbers, boundaries, and other specific details.
Conveyance Language:
- The deed must include specific language indicating that the property is being transferred. Terms like “grant,” “transfer,” or “convey” are commonly used.
Guarantees and Warranties:
- The grantor guarantees that they hold clear title to the property and that there are no undisclosed encumbrances. This does not cover claims arising from the actions of previous owners, which is where title insurance becomes essential.
Signatures and Notarization:
- The grantor must sign the deed, and in most cases, the signature must be notarized to be legally binding.

How Grant Deeds Work

Preparation:
- The grant deed is prepared, usually by a real estate attorney or a title company, ensuring all necessary information is accurate and complete.
Execution:
- The grantor signs the deed in the presence of a notary public. The notary verifies the grantor’s identity and ensures the document is signed willingly and without duress.
Delivery:
- The signed and notarized deed is delivered to the grantee. This step is crucial because the property transfer is legally binding once the grantee delivers and accepts the deed.
Recording:
- The deed is then recorded at the county recorder’s office in the jurisdiction where the property is located. Recording the deed provides public notice of the transfer and protects the grantee’s ownership rights against future claims.

Benefits of Using a Grant Deed

Assurance of Clear Title:
- The grant deed assures the buyer that the property is free from undisclosed encumbrances, providing peace of mind and legal protection.
Legal Transfer of Ownership:
- The deed facilitates the legal transfer of property ownership, ensuring the law recognizes the transaction.
Public Record:
- Recording the deed in public records helps prevent future disputes over property ownership.

Conclusion

A Grant Deed is an essential document in the real estate world, providing legal assurance and clarity in property transactions. For buyers, it offers confidence that they receive a clear title to the property, free of hidden encumbrances. For sellers, it provides a straightforward way to transfer ownership legally. Whether you are buying or selling real estate, understanding the role and function of a Grant Deed can help ensure a smooth and secure transaction.

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125