The grantee is the person or entity receiving ownership of real property through a deed. In a standard home purchase, the buyer is the grantee — they are "granted" ownership by the seller (the grantor). The grantee's legal name and how they choose to hold title — known as vesting — must be accurately stated on the deed, as this information becomes part of the permanent public record and affects the grantee's legal rights, tax obligations, and estate planning.
Getting the grantee's name right is more important than it might seem. The name on the deed should match the grantee's legal name exactly — the same name that appears on their government-issued identification and mortgage documents. Nicknames, abbreviated names, or maiden names should not be used unless they are the person's legal name. If multiple grantees are taking title (such as a married couple), all names must be listed. For entities taking title — such as an LLC, corporation, or trust — the entity's full legal name must be used.
How the grantee takes title is equally important. Common vesting options include: sole ownership (one individual), joint tenancy with right of survivorship (multiple owners with equal shares — when one dies, their share automatically transfers to the survivors), tenancy in common (multiple owners with potentially unequal shares — each owner's share passes to their heirs, not to the other owners), tenancy by the entireties (available to married couples in some states, providing asset protection), and trust ownership (the trustee is the grantee on behalf of the trust).
Choosing the wrong vesting can have significant consequences. For example, if an unmarried couple takes title as joint tenants but later separates, the right of survivorship means the surviving partner would inherit the entire property regardless of the deceased partner's wishes. If the couple had intended for their respective heirs to inherit their shares, tenancy in common would have been the appropriate choice. Changing vesting after closing requires a new deed and additional recording fees.
At closing, the settlement agent confirms the grantee's legal name and desired vesting before preparing the deed. At Beycome Title, we discuss vesting options with every buyer and ensure the deed reflects their intentions accurately. While we can explain the options, we recommend consulting with an attorney or tax advisor for advice on which vesting best suits your personal and financial situation. Get your free closing estimate.