The Collaborative International Dictionary of English v.0.48:

grantee \gran*tee"\ (gr[.a]n*t[=e]"), n. (Law)
   The person to whom a grant or conveyance is made.
   [1913 Webster]

         His grace will not survive the poor grantee he
         despises.                                --Burke.
   [1913 Webster]

WordNet (r) 3.0 (2006):

grantee
    n 1: a recipient of a grant
    2: someone to whom the title of property is transferred [syn:
       alienee, grantee]