What Is a Bargain & Sale Deed?
A bargain and sale deed conveys real property without any covenants or warranties. It implies that the grantor has the right to convey title, but it does not guarantee that the title is free of encumbrances. These deeds are often used in foreclosure sales, tax sales and transfers by fiduciaries such as executors or sheriffs.
Characteristics
Because there are no warranties, the buyer takes the property “as is.” The deed passes whatever interest the grantor has, if any. In some jurisdictions, a bargain and sale deed with covenants may be used, which includes limited warranties similar to a special warranty deed.
Risks and Considerations
If you receive a bargain and sale deed, it is essential to perform thorough due diligence. Order a title search, review lien records and inspect the property. Title insurance can protect against defects in the chain of title.
Official source links
- CFPB Homeownership Guidance
Mortgage, closing, and ownership fundamentals from a federal consumer regulator.
- HUD Homebuying Topics
Federal guidance on buying, financing, and avoiding common purchase mistakes.
- USA.gov State Government Directory
Direct path to official state and local government websites.