What you need to know about
Bargain and Sale Deed
A bargain and sale deed legally conveys a piece of property without any warrantees regarding title or other covenants.
- Selling real estate in circumstances where you cannot guarantee a clean title
- Conveying real property through an estate.
A deed is the legal instrument that proves ownership in a piece of property. Deeds must be recorded in the public land records to create a ledger of past and present ownership. There are several types of deeds, and deciding which deed is appropriate for you to convey your property depends upon the facts and circumstances of the exchange.
A bargain and sale deed is used to convey a piece of property when the existing owner cannot make any guarantees to the new owner that the title is valid. Bona fide purchasers who pay for real property in good faith typically expect to receive good title, and for the most part that is the case. However, public records of property transactions sometimes span hundreds of years, and sometimes the chain of title for a piece of property is broken as a result of an error that occurred far in the past. The property title continues to be transferred from owner to owner without anyone knowing that each of these transfers is invalid because of past error. Because this is a risk to many real estate transactions, sellers may choose to convey property through a bargain and sale deed, which does not require them to swear that the chain of title was never broken.
If a holder of a bargain and sale deed discovers that the chain of title had been broken, and in fact she does not legally own the property she believed she had purchased, she typically has no legal right to a refund of the purchase price of the property. If you are involved in a real estate transaction where the seller is offering a bargain and sale deed, it is best to consult with a title insurance company and an attorney before completing the sale.
Preview of Bargain and Sale Deed
Recording Requested By and
When Recorded Mail To:
BARGAIN AND SALE DEED
THIS BARGAIN AND SALE DEED made this ___ day of ___________, 20___, by and between __________________, whose address is __________________________, as Grantor, and _____________________________, whose address is ________________________, as Grantee.
WITNESSETH: That the Grantor for and in consideration of the sum of TEN AND 00/100 DOLLARS ($10.00) and other good and valuable considerations, receipt whereof is hereby acknowledged, hereby grants and conveys (transfers ownership of) to the Grantee and Grantee’s successors and assigns forever, that certain real property in the City of ____________, County of ___________, State of _____________, more specifically described on Exhibit A attached hereto and made a part thereof.
The Grantor promises that the Grantor has done no act to encumber the property.
[signatures on following page]
IN WITNESS WHEREOF, Grantor has executed this Bargain and Sale Deed as of ________________, 20____.
STATE OF ___________________
COUNTY OF _________________
On ________________, 20____ before me, __________________, notary public, personally appeared______________________, who proved to me on the basis of satisfactory evidence to be the persons whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity as _______________ of __________________, and that by his or her signature on the instrument the company upon behalf of which the persons acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of ____________ that the foregoing is true and correct.
Witness my hand and official seal.
BARGAIN AND SALE DEED Checklist
- Grantor: a person, group, etc., who conveys or transfers ownership of property. Grantor is __________.
- Grantee: a person, group, etc., to whom a transfer or conveyance of property is made. Grantee is _______________.
- Bargain and Sale Deed: The Grantor conveys interest Grantor has in the property without covenants.
Make It Legal™
Find out next steps for your document:
___ Populate the Exhibits. Exhibits need to be completed.
___Review Carefully. Look over the document carefully to ensure it matches your intentions. The document needs to be recorded so legal description must be accurate. Pagination, margins, notary block, etc. may need to be modified to comply with state or county rules.
___Sign the Deed. This document needs to be signed by the Grantor. Original signatures are required in the presence of a notary public.
___Secure Originals. After recording, Grantee should maintain originals in a safe and secure place.
Disclaimer: It is strongly advised to have your Deed reviewed or advised on by an attorney before entering into a legal relationship with another party. To speak with a lawyer about this contract or any other legal need, please visit LawTrades.com.