Bargain and sale deed

Definition of Bargain and sale deed

The bargain and sale deed is a basic form of deed. It is a legal instrument (contract) that ascribe ownership (recites a consideration) of the property and conveys all of the transferable grantor (the person giving the deed) or seller’s interest, rights and title in the property to the grantee ((the person receiving the deed), including development credits from a parcel of land and the right to modify the property.

It is important to remember that a bargain and sale deed  does not means the grantor is making a promise about anything. This deed, in general, do not contain warranties against liens or other encumbrances against title. The recipient of a bargain and sale deed is acquiring real property without knowing if there are any defects or encumbrances on it, unless stated in the deed.Bargain and sale , except any that the grantor specifically sets out in the deed. The grantor does not agree to defend the title against future claims

Warranty Deed

Bargain and sale deed is sometimes referred to as a special or limited warranty deed. However, in most jurisdictions, a bargain and sale deed is not the same as a warranty deed, and it is more popular than a warranty deed.

A Bargain and Sale Deed is commonly used, for example, when a bank conveys title after foreclosure or a personal representative conveys title from a decedent’s estate.

The grantor makes no warranties of title to the grantee. In some jurisdictions, the grantor provides one warranty to the grantee, contained in the seisin clause. The seisin clause warrants that the grantor owns and has the legal rights to transfer the property to the grantee.

A type of statutory deed

A bargain and sale deed is an example of a statutory deed. A statutory deed is one which, according to statute, can be delivered in short form. The law in some juridictions states that the covenants and warranties required for each type of statutory deed are implied to exist even though they may not be contained in the deed in detail.

There are, depending to the jurisdiction, 4 types of statutory deeds:

bargain and sale deed
general warranty deed
quit claim deed
special warranty deed

Other Deeds

Guarantee Deed (most parts of the United States use the warranty deed). It guarantees that the guarantor of the obligations will correct any defect of title.

Quitclaim deed. Used, for example, to clear ownership defects.

Trust Deed. The trustee, executor or guardian, acting in an official capacity, may use use the Trust Deed in order to transfer the property as a guarantee of the mortgage. In the case of foreclosure, the Trustee shall be entitled to sell the property. A bargain and sale deed means that you have a title, but did not specify the property is free from encumbrances or defects.

See Also

 
Bargain and Sale in the American Encyclopedia
En Bloc in the Legal Dictionary
Fait Enrolle in the Legal Dictionary
Bargain in the Asian Encyclopedia

Bargain Theory of Consideration
Bargaining Agent
Bargaining Obligation Dispute [Administrative Personnel]
Bargaining Order
Bargaining Rights
Absolute Deed
Absolute Sale
Act and Deed
Agreement of Sale
All Inclusive Deed of Trust [AIDOT]
Application for Sale of Real Property
Asset Sale
Auction Sale
Bankruptcy Sale
Bargain Theory of Consideration

What does Bargain And Sale Deed mean in American Law?

The definition of Bargain And Sale Deed in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

The name of a deed which recites the consideration received for the conveyance. See also bargain and sale.

Concept of Bargain And Sale Deed in the context of Real Property

A short definition of Bargain And Sale Deed: A contract or deed which conveys a “use” in the buyer under the Statute of Uses. Although the deed may also convey legal title, there are no warranties by the seller that title is good unless specified. See also: Grant Deed; Quit Claim Deed; Warranty Deed.

Concept of Bargain And Sale Deed in the context of Real Property

A short definition of Bargain And Sale Deed: A contract or deed which conveys a “use” in the buyer under the Statute of Uses. Although the deed may also convey legal title, there are no warranties by the seller that title is good unless specified. See also: Grant Deed; Quit Claim Deed; Warranty Deed.