Bargain and Sale Deed
Definition
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
Example
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 Tip
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 Title Transfer Terms
Deed
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.
General Warranty Deed
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.
Special Warranty Deed
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.
Quitclaim Deed
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.
Deed Requirements (Essential Elements)
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.
Title Search
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
Frequently Asked Questions
Test Your Title Transfer Knowledge
Practice with exam-style questions to make sure you can apply Bargain and Sale Deed and other title transfer concepts.