A bargain and sale deed falls between a general warranty deed and a quitclaim deed in terms of protection. It implies the grantor has an interest to convey but makes no express guarantees about title quality. Bargain and sale deeds are commonly used in tax sales, foreclosure sales, and estate sales.
A county government sells a property at a tax lien auction using a bargain and sale deed. The county implies it has authority to sell the property but does not guarantee there are no other liens or encumbrances against it. The buyer accepts the risk of potential title issues.
Exam questions about bargain and sale deeds often appear in the context of tax sales or foreclosures. Remember that this deed implies the grantor HAS title but does not guarantee it is free of defects. The phrase "bargain and sale" itself suggests a transaction occurred, unlike a quitclaim which makes no implication of ownership.
Related Terms
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
Frequently Asked Questions
Study This in Your State
Bargain and Sale Deed may have state-specific rules. Choose your state to study Transfer Of Title with localized content: