what is a grant deed

A grant deed is a legal document used to transfer real estate from one person or entity to another person or entity. It is a type of deed that conveys property from the prior owner to the new owner with a limited warranty of title. The grantor of a grant deed makes two guarantees to the grantee: 1) The property has not been sold to anyone else, and 2) The house is not under any liens or restrictions that have not already been disclosed to the buyer/grantee. This assures the grantee that there are no legal claims to the property by third parties, and no taxes are owed on the property that would restrict its sale. A grant deed must be in writing and include the names of the grantor and the grantee, a legal description of the property being transferred, words of conveyance, and the grantor’s signature. The extensive guarantees and protections offered by grant deeds include the covenant of quiet enjoyment, which guarantees that the grantee’s title will be good against third-party claims. Grant deeds strike a balance between protection and simplicity, using precise and unambiguous language to ensure clarity and understanding. They require full disclosure of any encumbrances on the property, such as liens or restrictions, to allow grantees to make informed decisions before finalizing the transaction.