Certified Residential Appraiser Practice Exam

What is the term for the buyer in a property transaction?

1. Grantor

2. Grantee

3. Optionee

4. Lessee

The correct answer is: Grantee

In a property transaction, the term for the buyer is known as the "grantee." This term is used to refer specifically to the individual or entity that receives a property, or the one that is granted ownership through a deed. The grantee is the party who acquires an interest in the property, typically after paying an agreed-upon price, which establishes their ownership rights. The other terms represent different roles within real estate transactions: - The grantor is the individual or entity that transfers ownership, effectively selling the property to the grantee. - An optionee refers to a party that holds an option to purchase a property, which means they have a right to buy at a later date but are not necessarily the current owner or buyer until they execute that option. - A lessee is someone who rents or leases a property, thus does not hold ownership but rather has permission to use the property for a specified period under a lease agreement. Understanding these definitions is crucial in real estate transactions and usage of the proper terminology accurately reflects the roles and responsibilities of each party involved.