Certified Residential Appraiser Practice Exam

What is the role of a grantor in a property transaction?

1. They are the borrower in a mortgage agreement

2. They are the buyer of the property

3. They are the seller of the property

4. They are the appraiser of the property

The correct answer is: They are the seller of the property

The role of a grantor in a property transaction refers specifically to the individual or entity that conveys or transfers ownership of property to another party. This makes them the seller of the property. In legal terms, when a grantor executes a deed, they are effectively granting the title of the property to the grantee, who is the buyer. This transaction is fundamental in real estate, as the grantor holds the legal title that they are relinquishing through the transfer. In the context of property transactions, understanding the roles is crucial. The correct identification of the grantor as the seller ensures clarity in the transfer process and helps outline the responsibilities and rights associated with ownership before and after the transaction. Recognizing this definition assists appraisers and professionals in accurately interpreting contracts, deeds, and transaction documents within the field.