Get to know the key differences between a grantor and a grantee. This article will explain the roles, responsibilities, and distinctions between the two parties.
What's the Difference Between a Grantor and a Grantee?
In legal terminology, the terms grantor and grantee refer to people who enter into a transaction. A grantor is someone who is giving away something, such as property, money, or a legal right. A grantee is someone who is receiving something from the grantor. Such transactions must be documented in a legal document such as a deed, a conveyance, or a trust. The terms grantor and grantee can also refer to insurance companies and groups. Let's look in more detail at the differences between a grantor and a grantee.
Grantor
A grantor is typically someone who transfers an asset to another person, such as giving away property or giving someone the right to use intellectual property. A grantor may also be a person or an entity that funds a project through a financial grant. In legal terms, a grantor has the legal capacity to transfer something, such as money, a right, or property, to another entity known as a grantee.
Grantee
A grantee is typically someone who receives an asset, such as property or a right to use intellectual property, from a grantor. The grantee usually uses the asset to achieve a specific goal or purpose, such as a research project or the expansion of a business. The grantee may be an individual, an organization, or a legal entity such as a corporation or trust.
Key Differences
The key difference between a grantor and a grantee is that the grantor is the one who transfers an asset to the grantee, while the grantee is the one who receives an asset from the grantor. The grantor is the one with the legal capacity to transfer an asset, while the grantee is the one who uses the asset to achieve a specific goal. It is important to understand the differences between a grantor and a grantee when engaging in a legal transaction.
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