The Covenant Against Encumbrances guarantees that no property encumbrance has occurred, except as the deed discloses. For example, if a grantor signs a contract agreeing to sell land with timber rights to a grantee but sells them to another entity and does not disclose it on a grant deed, the grantee may have a breach of contract claim against conveyances. If the grantor does not reveal any encumbrances against the property, the grantee may have a breach of contract claim against encumbrances.
A grant deed must show mechanics liens, judgment liens, tax liens and assessments, mortgages and trust deeds. The terms "deed of trust" and "mortgage" are sometimes interchangeable, and they may have some similarities, but ultimately, they are different. They are both public and recorded with the county clerk's office, and their terms depend on local and state laws. Neither is an actual loan, but they are contracts that place a lien on a property and detail how a mortgage lender also known as a mortgagee can repossess it through foreclosure if the homeowner or mortgagor cannot make payments on it.
A deed of trust involves a grantor, grantee and beneficiary, while a mortgage is a contract between a borrower and lender. They also fall under different foreclosure types with different timelines.
A mortgage needs a judicial foreclosure, which can take a long time, while a deed of trust is much faster and requires a nonjudicial foreclosure. Warranty deeds and deeds of trust serve to transfer property titles from one entity to another.
However, who they protect is different. The deed of trust protects the lender or beneficiary, while the warranty deed protects the property owner. When the transfer of a property title occurs by warranty deed, and its ownership goes from the grantor to the new buyer also known as the grantee , it guarantees that the previous owner wholly owned the property and can legally transfer it.
A warrantee of deed guarantees that a new owner will not inherit future claims or liens against the property and lets them know that they own it outright once the title is in their name. While a warranty deed guarantees that the grantor or original seller has the right to transfer the property title to a new owner and assures that it has no restrictions or liens, a quitclaim deed does not guarantee the validity of the grantor's authority for transferring the title.
However, this type of deed is commonplace when there is some uncertainty regarding the property title. This is not the only legal context in which grantors exist. In a court order, a grantor is a lawsuit plaintiff. They are also judgment creditors in an abstract of judgment.
Some documents do clearly show who the grantor is, but others may only list them in a sale description. Select basic ads.
Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products.
List of Partners vendors. A grantee is the recipient of a grant , scholarship, or some other asset such as real estate property. In contrast, a grantor is a person or entity that conveys ownership of an asset to another person or entity: the grantee.
Identifying the grantee and grantor is especially important in legal documents as specific duties, responsibilities, benefits, and limitations are assigned to each. A grantee is the recipient of something granted or given. The term can be used in different contexts and across different industries and institutions. In real estate, the grantee takes title to the purchased property.
In academia, a grantee is the recipient of a scholarship or grant. In the investment industry, a grantee can be the recipient of stock options. The grantor and grantee are named in legal documents, such as deeds, which transfer from one party to another the interests or rights to an asset.
However, what exactly is being transferred can differ depending on the type of legal document. For example, in real estate, a quitclaim deed provides no warranty regarding the status of the property's title to the grantee. This type of deed can render the grantee powerless should there be title defects whereby no interest in the property is transferred to the grantee.
These types of deeds are uncommon between parties with no existing relationship. Special warranty deeds assure the grantee that the grantor owns the asset, such as real estate property, and had no issues with the title during their ownership.
The special warranty deed does not provide any guarantees about the title before the grantor's ownership. General warranty deeds include warranties and covenants, offering grantees the most protection. With this deed, the grantee receives a warranty that the title is without title defects, such as encumbrances. Grantors also appear in other legal contexts. It grants the same rights the grantor had to the new owner.
This is common when there is some uncertainty about the title. A general warranty deed guarantees the grantor has the authority to transfer the property and provides assurances that the property title comes with no restrictions.
While some documents, especially real estate deeds, clearly spell out who the grantor is, other documents might have the grantor listed in the description of the sale. In any case, knowing the grantor is important in transfer of real property, in examining a trust, and in many other documents.
It can be helpful to understand a guarantor by first examining the concept of a guarantee. In financial terms, a guarantee is a promise — made by the guarantor — that a debt or other obligation will be paid if the original borrower is unable or unwilling to make good on the loan.
The guarantor is the person or organization who accepts the responsibility to see that the debt is satisfied. If the borrower does not have sufficient credit standing to acquire the loan on their own, they may seek a guarantor. Additionally, if the borrower does not have sufficient assets to secure the loan, a guarantor may be asked to co-sign the loan.
The guarantor usually plays no role in the loan after it is secured. Only in the event that the borrower is unable or unwilling to repay the loan does the lender then seek out the guarantor to take up the debt obligation.
In order to help ensure that the borrower does not willingly walk away from the debt obligation, lenders usually prefer close relatives or friends for loans to individuals. The trustee plays an interesting role in administering a trust. Once the grantor has set up the trust, a trustee is appointed to make decisions for the trust that are in the best interest of the beneficiaries.
In the case of a revocable living trust, the trustee and the grantor are usually the same person, as long as the grantor is alive and capable of making decisions to administer the trust. After the grantor has passed away or become incapable of administering the trust, a successor trustee steps in to continue making the decisions on behalf of the beneficiaries.
It is important to note that the trustee is expected to make decisions that are in the best interest of the beneficiaries, even if those decisions go against the wishes of the beneficiaries.
For that reason, the trustee must be a person the grantor trusts to act with honesty and with sound judgment at all times.
0コメント