California Real Estate Practice Exam

Who is the grantor in a real estate transaction?

1. Buyer

2. Lender

3. Renter

4. Seller

The correct answer is: Buyer

In a real estate transaction, the grantor is the party who conveys or transfers ownership of the property to another party. This is typically the seller, as they are the ones who provide the deed to the buyer (who is referred to as the grantee in this context). The grantor is responsible for executing the deed that transfers the title to the buyer, thereby relinquishing ownership rights over the property. A buyer is not the grantor in this scenario; instead, they are often the recipient of the property transfer, making them the grantee. The lender and renter roles do not pertain to the act of transferring ownership; rather, a lender provides financing for the purchase, and a renter occupies the property under a lease agreement without transferring ownership. Understanding this distinction between the roles in a real estate transaction is essential for comprehending how ownership is transferred and the legal implications involved.