A county acquires a parcel through tax foreclosure and later sells it at public auction. The county's deed recites that the county holds title and has the right to convey the parcel, but it makes no covenants of warranty at all: none for defects arising before the foreclosure and none for anything that happened during the county's own period of ownership. The buyer relies on a title insurance policy instead. Which type of deed did the county use?
Correct Answer
C) Bargain-and-sale deed
A bargain-and-sale deed implies that the grantor holds title and has the right to convey it, yet it carries no covenants of warranty. That is exactly what this deed does: it asserts ownership but promises nothing about defects from any period. A quitclaim would imply no ownership at all, and both warranty forms would add covenants this deed expressly withholds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Recording is the act of placing a document in the public records at the county recorder's office to give constructive notice to the world of an interest in real property. Recording protects the holder's interest against subsequent claims.
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.
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