Bargain and sale deed

A bargain and sale deed is in United States real property law, a deed "conveying real property without covenants".[1]

This is a deed "for which the grantor implies to have or have had an interest in the property but offers no warranties of title to the grantee. This type of deed is typically used in many states to transfer title."[2]

Under common law, this type of deed technically created a use (law) in the buyer who then gets title.[3] Under the Statute of uses, modern real property law disregards this subtle distinction.

A bargain and sale deed is especially used by local governments, fiduciaries such as executors, and in foreclosure sales by sheriffs and referees. The fact that it comes without any warranties from the government means that the new owner may not have good title. If in fact, the city did not have good title or the city could not convey good title, then the new landowner is unlikely to be successful in obtaining a refund of the purchase price.[4]

Some states require a specific form to be used.[5] Some states also allow a grantor (or seller) to add warranties. In such case, it may be called a bargain and sale with covenants deed.[6]

See also

References

  1. ↑ Black's Law Dictionary, p. 46 (2001 edition).
  2. ↑ Answers.com
  3. ↑ Lawyers.com web site
  4. ↑ See, e.g., justia.com, citing Winters v. County of Clatsop (2007).
  5. ↑ Washington state official web site
  6. ↑ World Law Direct web site
Wikisource has the text of the 1911 Encyclopædia Britannica article Bargain and Sale.
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