What Is a Bargain and Sale Deed?
A Bargain and Sale Deed is a legal document used to convey real property where the seller offers no surety of title to the buyer.
- Deed of Bargain and Sale.
It resembles a Quit Claim Deed in the sense that no protection is offered to the buyer against any potential issues over the property that may arise in the future. They are especially used by local governments, fiduciaries, and sheriffs for transferring title to real property from a tax sale, foreclosure, or estate sale. The reason is that in these cases the grantor would not necessarily know of any encumbrances attached to the land and cannot provide a clear title guarantee. In addition, this document can be drafted when the parties involved are familiar with each other. They are commonly used in Colorado, New York, Vermont, Washington, and Wyoming. You can download our PDF forms through the links below.
What Is the Difference Between a Bargain and Sale Deed and a Warranty Deed?
The difference between a Bargain and Sale Deed and a Warranty Deed is that the first implies that the grantor holds title and possession but does not warrant against liens or encumbrances, and the latter guarantees that the grantor’s title is clear and unencumbered. While a Bargain and Sale Deed without covenants only implies but does not ensure that the seller has the right to sell the property or that the title is valid, this tool can also include covenants where the seller provides a guarantee that they own and are able to sell the property.