Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
A real estate professional should be fully capable of recognizing the difference between a grantor and a grantee when it comes to important legal paperwork. This is because a grantor and a grantee would have distinct responsibilities, obligations, and perquisites allotted to each of them.
The term grantee is rather flexible. It is not exclusively used in real estate lingo. The word essentially refers to any person who is the recipient of something which may or may not be of value. This thing is usually granted to the grantee by another person. For instance, in the field of academics, a grantee can be a person who has received an award or a scholarship. Similarly, in the corporate territory, a grantee can be a person who receives stock options.
When it comes to real estate, the reason why identifying a grantee is vital is because it helps in understanding all the rights and accountabilities that are transferred to him. On being the recipient of a real estate asset, the grantee also becomes liable for the responsibilities towards such an asset.
In order to fully comprehend the concept of the grantee, it helps to get acquainted with the following terminology:
• Grant Deed- A grant deed is essentially a legal piece of document that constitutes the transfer of ownership from a “grantor” to a “grantee”.
• Conveyance- In legal language, a conveyance is an act of transferring ownership of some real estate property from one person (grantor) to another (grantee). It refers to the execution of a grant deed.
• Warranty Deed- In such context, a warranty deed would indicate a legal document that implies a transfer of property by the seller whereas the seller assures the grantee of having no existing claims on the property.
• General Warranty Deed- This is a type of agreement that offers the most security to the grantee with respect to problems related to the title of the property.
