A bargain and sale deed is a legal document used to transfer ownership of real estate. There are two main types of deeds used for property transfers — warranty deeds, which come with guarantees about the condition of the property being sold, and quitclaim deeds, which do not. A bargain and sale deed is a type of quitclaim deed that conveys property without any warranties or guarantees about the condition of the title or property. For help with a bargain and sale deed, contact MacGregor Abstract.
A bargain and sale deed can be an effective way for a seller to transfer ownership of their home if they don’t want to make any guarantees about the property’s condition. With this deed, you must list any potential problems with the title or real estate that you know about before signing it over. The bargain and sale deed also includes language that states you aren’t aware of other possible issues with the property’s title or condition.
When would you use a Bargain and sale deed?
You can use this type of deed when selling your home. The buyer will accept full responsibility for any known or unknown defects in the title and/or physical property once they sign the papers. A bargain and sale deed can be helpful if you don’t have enough information to fill out a warranty deed, but still want to sell your home.
A bargain and sale deed is a document used to convey title to real property. It contains a covenant that guarantees the seller really has title to the property and that there are no undisclosed liens or encumbrances against it. If the bargain and sale deed is quitclaim, it does not have a covenant of title, but merely warrants that the person transferring ownership does not have any claims against the property.
When would you use a Bargain and sale deed?
A bargain and sale deed may be used in a transaction when a seller wants to transfer whatever interest they may have in real property but cannot guarantee if they own the property free and clear of all encumbrances. For example, if a seller signs a deed with a Warranty of Title (a Grant Deed) but does not know for sure that no mechanic liens exist on the property, then they will be liable for any mechanic liens attached to the property after closing. In order to avoid this liability, the seller can execute a bargain and sale deed with full disclosure of any unrecorded mechanic liens known to them.
A bargain and sale deed is also commonly used when land contracts are foreclosed upon because it protects both parties from any disputes regarding ownership of the real estate post-foreclosure
In cases where the grantor is not able to guarantee a clear title to real property, a Bargain and Sale Deed can be used to transfer the title from one person or entity to another. The person or entity receiving the deed takes it “as is” and promises not to hold the grantor (the person or entity transferring it) liable for any issues with the title that may arise in the future. The deed does not guarantee that there are no liens against the property.
The Bargain and Sale Deed can also be used to transfer property if there is a cloud on the title, meaning that someone other than the grantee has an interest in the property. For example, when a spouse passes away, their surviving children may have an interest in their parent’s house. If their surviving parent wishes to sell the house while they are still alive, they could use a Bargain and Sale Deed because it would transfer ownership of the house without guaranteeing that there was no interest by other people in that property.
