DEFINITION of 'Grant Deed'
A legal document used to transfer ownership of real property. A grant deed contains the name of the person or entity transferring the property (the grantor); the legal description of the property being transferred (i.e., lot number, tract number, city, county and state); and the name of the person or entity that the property is being transferred to (the grantee). The grant deed shows that the title has not already been granted to another person.
BREAKING DOWN 'Grant Deed'
There are numerous types of grant deeds that can be used, depending on who is transferring property to whom. For example, an interspousal transfer grant deed is used to transfer ownership of real property from one spouse to another (often during a divorce). This type of transfer does not cause the property's value to be reassessed for property tax purposes. However a grant deed is the most common type of deed. The actual signing of a grant deed is usually witnessed by a notary. The grantee usually must pay a small fee when the deed is recorded with the county government.