What is Bargain and Sale Deed, and are there any negative implications?

What is Bargain and Sale Deed? With the regular Warranty Deed, owner guarantees title for the entire lifetime of the property. With Bargain and sale deed, owner is guaranteeing only for the period they owned the property, and not the entire history. Bargain and Sale deed is usually used when owner isn’t aware of the history of the property and becomes owner abruptly due to some unfortunate incident. This is especially used by banks for foreclosures.

Is there a risk?: Yes, since the owner is not guaranteeing title before their ownership, there is risk. Someone before the current ownership may have interest in the property, and can later come to claim it. [In this case since people owning it have been the same so the chances are much lower]

Possible reason to use?: Couple of reasons
1. If the owners passed away and the current owner doesn’t have much info and can’t guarantee title before their ownership.
2. It can also be a result of bad legal advice by the attorney to be over protective.


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