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."[2]
Under common law, this type of deed technically created a use 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
- Conveyance
- Deed
- Foreclosure sale
- Quitclaim deed
- Warranty deed
References
- ^ Black's Law Dictionary, p. 46 (2001 edition).
- ^ Nance, Cheryl P. (2003). Modern Real Estate Practice in Texas. Dearborn Real Estate. p. 354. ISBN 0793184711. Retrieved 13 December 2017.
- ^ See definition of deed', Merriam-Webster's Dictionary of Law. Merriam-Webster, Inc. 1996. p. 126. ISBN 0877796041. Retrieved 13 December 2017.
- ^ See, e.g., "Winters v. County of Clatsop, 150 P. 3d 1104, 210 Or. App. 417 (2007)". Google Scholar. Retrieved 13 December 2017.
- ^ See, e.g., "RCW 64.04.040: Bargain and sale deed—Form and effect". Washington State Legislature. Retrieved 13 December 2017.
- ^ Strawn, James R. (January 2017). "Use of the Special Warranty in Oklahoma and Texas Oil and Gas Transactions". Oil and Gas, Natural Resources, and Energy Journal. 2 (5): 545. Retrieved 13 December 2017.