Kevin received a property in Howard County through a sheriff's deed following a foreclosure sale. He is now trying to sell the property to a buyer represented by a Maryland licensee. The buyer's agent explains that a sheriff's deed is most similar to which of the following types of deeds in terms of the warranty protection it provides?
Correct Answer
D) Bargain and sale deed or quitclaim deed, because it conveys only the interest held by the judgment debtor with no warranty covenants
A sheriff's deed is a deed issued by a public official pursuant to a court order following a foreclosure or execution sale. In Maryland, sheriff's deeds and similar court-ordered deeds (such as trustee's deeds in foreclosure) convey only the interest that the judgment debtor held and contain no warranty covenants. They are functionally equivalent to a quitclaim or bargain and sale deed in that the grantee takes the property subject to any title defects or encumbrances that existed. This is why title insurance is strongly recommended when purchasing properties through foreclosure in Maryland.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
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