What Is a Grant Deed?
A grant deed (sometimes called a special or limited warranty deed) is a written legal instrument used to transfer ownership of real property from one party (the grantor) to another (the grantee). Unlike a quitclaim deed, a grant deed contains limited warranties: the grantor warrants that (1) they received title to the property and (2) the property was not encumbered by the grantor at the time of transfer except as noted in the deed. It does not guarantee against defects that arose before the grantor held title, and it does not usually obligate the grantor to pay legal defense costs if a pre‑existing title claim arises [Investopedia; Cornell LII].
Key Takeaways
– A grant deed transfers real property and includes limited warranties from the grantor to the grantee.
– Required elements commonly include grantor and grantee names, legal description of the property, words of conveyance, the grantor’s signature, and often notarization and recording.
– Grant deeds provide more protection than quitclaim deeds but less than a general warranty deed.
– State law controls deed form and recording requirements; always check local requirements or consult a real estate attorney [Investopedia; Cornell LII; NC Secretary of State].
Uses and Content of a Grant Deed
Uses
– Ordinary transfers of title where the seller is willing to warrant title only as to their own period of ownership.
– Interspousal transfers (transfers between spouses).
– Transfers after tax sales or foreclosures in jurisdictions that use this form.
– Estate transfers, gifts, and some intra‑family transfers where limited warranties are acceptable.
Typical Content (what a grant deed should include)
– Names of the grantor (seller) and grantee (buyer).
– Clear legal description of the property (lot, tract, county, state—not just mailing address).
– Words of conveyance (for example, “grant, bargain, sell and convey”).
– Statement of the warranties being made (that grantor received title and that title was unencumbered while in grantor’s possession, except as disclosed).
– Date and the grantor’s signature.
– Notary acknowledgment (commonly required).
– Witness signatures, if required by state law.
– Recording block or spaces for county recorder stamps/recording information [Investopedia; Cornell LII].
Real Estate Investing Considerations
– Level of protection: Investors should assess whether the limited warranty provided by a grant deed is adequate. For the highest protection, a buyer should seek a general warranty deed combined with a title insurance policy.
– Title search and insurance: Always obtain a title search and consider a title insurance policy to protect against unknown prior defects. A grant deed does not substitute for title insurance.
– State law and practice: Deed names and enforceability vary by state—what is common in California (grant deed) may be less used elsewhere. Know local practice and recording requirements.
– Risk tolerance: Grant deeds are a mid‑point in risk—less risk than accepting a quitclaim, more risk than a general warranty deed [Investopedia].
Practical Steps — For Sellers (Grantors)
1. Confirm the property description and your ownership: obtain a copy of the current deed and any mortgage or lien statements.
2. Decide the deed form: work with an attorney or title company to prepare a grant deed that includes the required limited warranties and state‑required language.
3. Disclose encumbrances: expressly list any mortgages, liens, easements, or other encumbrances that will remain.
4. Sign before a notary: execute the deed by signing in the presence of a notary public (and witnesses if the state requires).
5. Deliver to the buyer: physically deliver the executed deed to the grantee or their agent; delivery is necessary for transfer of title.
6. Record the deed: most sellers cooperate in recording, but usually the buyer or title company records the deed at the county recorder’s office; ensure transfer tax or recording fees are handled [Investopedia; NC Secretary of State].
Practical Steps — For Buyers (Grantees)
1. Order a title search: identify existing liens, easements, or other issues.
2. Choose the level of warranty you need: request a grant deed, general warranty deed, or insist on title insurance depending on risk tolerance and negotiation.
3. Review deed language: confirm the deed’s legal description, the wording of warranties, and any excluded encumbrances.
4. Ensure proper execution: verify the deed is signed and notarized correctly.
5. Record promptly: record the deed with the county recorder where the property is located to protect your interest and provide public notice.
6. Purchase title insurance (recommended): this protects against many unseen title defects and is important even if you receive a grant deed [Investopedia; Cornell LII].
Recording a Grant Deed — Step‑by‑Step
1. Verify the county recorder’s required format, fees, and any transfer tax forms.
2. Submit the original signed and notarized deed (originals are typically required).
3. Pay recording fees and any transfer taxes.
4. Obtain a recorded copy with the recorder’s stamp for your records.
Recording provides constructive notice of ownership to third parties; until recorded, your claim is weaker against subsequent purchasers or lenders (varies by state) [NC Secretary of State; Cornell LII].
Is a Grant Deed the Same as a Mortgage?
No. A grant deed transfers ownership of property from seller to buyer. A mortgage is a security instrument that pledges real property as collateral for a loan. A mortgage creates an encumbrance (lien) on the property; a grant deed conveys title. They are separate documents used for different purposes [Investopedia].
What Is the Difference Between a Grant Deed and a Quitclaim Deed?
– Grant deed: includes limited warranties by the grantor (they received title and did not encumber property while they owned it) and provides some assurance to the grantee.
– Quitclaim deed: conveys whatever interest (if any) the grantor has without any warranties or covenants. If the grantor has no interest, the grantee receives nothing. Quitclaim deeds are often used to clear up title issues or transfer among family members where the risk is acceptable [Investopedia; Cornell LII].
What Is the Strongest Type of Deed?
A general warranty deed is the strongest form of deed for a buyer. The grantor makes sweeping covenants that they hold good title and will defend against claims arising from any period, including before the grantor’s ownership. This gives the grantee the greatest protections but exposes the grantor to the most liability [Investopedia].
Other Types of Deeds (brief)
– General warranty deed: broadest guarantees; grantor warrants title against all defects, past and present.
– Quitclaim deed: no warranties; conveys only whatever interest grantor may have.
– Special or limited warranty deed: similar to a grant deed—warrants only against defects that arose during the grantor’s ownership.
– Deed in lieu of foreclosure, trustee’s deed, sheriff’s deed, interspousal transfer deed—each used in specific contexts and carry different warranties and implications [Investopedia].
Tip
Even when receiving a grant deed, buyers should obtain an up‑to‑date title search and consider title insurance. Confirm recording requirements and local practice. If you are unsure which deed is appropriate or how to handle encumbrances, consult a qualified real estate attorney or title company [Investopedia; Cornell LII].
Practical Checklist Before Closing or Recording
– Verify grantor/grantee legal names and marital status, if relevant.
– Confirm full legal description (not just street address).
– Review warranty language and any listed exceptions.
– Ensure deed signed, dated, notarized, and witnessed (where required).
– Confirm mortgages, liens, easements are disclosed and addressed.
– Order title search and decide on title insurance.
– Arrange payment of transfer taxes and recording fees.
– Record the deed promptly and obtain recorded copy.
Common Issues and How to Handle Them
– Missing or incorrect legal description: Do not record—have the deed corrected to avoid conveyance defects.
– Undisclosed liens: Title search should catch them; resolve liens before closing or negotiate seller payoff.
– Unrecorded prior interests: Recording provides constructive notice; title insurance helps protect against undisclosed prior claims.
– Out‑of‑state or out‑of‑country grantors: Additional documentation (e.g., apostille) may be required—check local recorder rules.
The Bottom Line
A grant deed is a commonly used deed type that provides limited warranties—better protection than a quitclaim deed but less than a general warranty deed. It is suitable in many ordinary transfers of property where the grantor is willing to warrant title only for the period of their ownership. Because deed law and recording practices vary by state, and because title issues can be costly, obtain a title search, consider title insurance, and consult real estate counsel or a title company when buying or selling real property [Investopedia; Cornell LII; NC Secretary of State].
Sources and Further Reading
– Investopedia, “Grant Deed,” https://www.investopedia.com/terms/g/grant-deed.asp
– Cornell Law School, Legal Information Institute, “Grant Deed,” https://www.law.cornell.edu/wex/deeds
– North Carolina Department of the Secretary of State, “Reading a Deed and Determining Its Stated Intent,” https://www.sosnc.gov/
(Consult your county recorder or state statutes for local recording and deed‑form requirements.)
Disclaimer: This article is for general informational purposes and does not constitute legal advice. For transaction‑specific guidance, consult a licensed real estate attorney or title professional in the property’s jurisdiction.