Grant Deed

A grant deed (also called a special or limited warranty deed) is a legal document that transfers ownership of real property from a seller (grantor) to a buyer (grantee). It provides limited assurances about the title: more protection than a quitclaim deed but less than a general warranty deed.

What a grant deed warrants

A grant deed typically includes two primary warranties from the grantor:
* The grantor received title to the property.
* The property was not encumbered by the grantor (except as expressly noted in the deed).

It does not warrant against title defects that existed before the grantor took title, nor does it usually guarantee payment of legal costs if a prior title claim must be defended.

Required contents and formalities

For a grant deed to be valid, it generally must:
* Be in writing.
* Name the grantor and grantee.
* Include a legal description of the property (lot/tract numbers, city/county/state or equivalent).
* Contain words of conveyance (e.g., “grant, bargain, sell, and convey”).
* Be signed by the grantor.

Many states also require notarization and may require witness signatures or recording in the county land records to protect the grantee’s interests.

Common uses

Grant deeds are commonly used for:
* Standard real estate transfers where limited seller warranties are appropriate.
* Transfers in tax sale or foreclosure contexts.
* Interspousal transfers (e.g., during divorce or estate planning), where a spouse conveys property to another spouse.

They serve as a middle-ground option between quitclaim deeds (minimal protection) and general warranty deeds (maximum protection).

How a grant deed compares to other deeds

• General warranty deed: Offers the greatest protection to the buyer. The grantor warrants title against all defects, including those predating their ownership. Common covenants include seizin, freedom from encumbrances, and quiet enjoyment.
• Quitclaim deed: Conveys whatever interest the grantor may have, if any, without any warranties. Often used to correct title issues or transfer between closely related parties.
• Tax deed: Conveys ownership after a government sells property to recover delinquent taxes; procedures and protections vary by jurisdiction.

Grant deed vs. mortgage

A grant deed transfers ownership of property. A mortgage is a security instrument that pledges property as collateral for a loan. They are distinct documents serving different purposes.

Real estate investing considerations

• Real property value is strongly location-dependent (local economy, schools, crime, transportation, taxes, zoning).
• When buying property directly, the type of deed affects the buyer’s protection against title defects.
• Investors can also access real estate indirectly through REITs or mortgage-backed securities if they prefer not to hold title directly.

FAQs

Q: Is a grant deed the same as a quitclaim deed?
A: No. A grant deed includes limited warranties about title and encumbrances; a quitclaim deed conveys only the grantor’s present interest (if any) with no warranties.

Q: Which deed gives the most protection to a buyer?
A: A general warranty deed provides the strongest buyer protections because it includes broad covenants by the grantor covering the entire history of the title.

Q: Do I need a lawyer to use a grant deed?
A: Real estate laws vary by state. It’s wise to consult a qualified real estate attorney, broker, or title professional if you have questions about drafting, executing, or recording a deed.

Bottom line

A grant deed transfers title and offers limited assurances: it confirms the grantor held title and did not encumber the property while they owned it (except as disclosed). It balances buyer protection and seller liability, sitting between quitclaim and general warranty deeds in terms of risk and protection. When acquiring or conveying property, understand which deed is used and follow state-specific formalities to ensure the transfer is effective and recorded.