🏠 What Is a Bargain and Sale Deed in Real Estate?
A bargain and sale deed is a legal document used to transfer property ownership where the seller (grantor) conveys title but offers limited or no warranties about the property’s history. It’s most common in states like New York, New Jersey, and Pennsylvania, often used in estate sales, foreclosures, or transfers involving government entities.
How a Bargain and Sale Deed Works
Unlike a general warranty deed, which guarantees a clear title for the property’s entire history, a bargain and sale deed only implies that the grantor has the right to transfer ownership — it does not guarantee against past claims or defects.
- Limited warranty: Protects only against claims made while the seller owned the property.
- Used in: Foreclosures, estate settlements, and tax sales where minimal warranties are required.
- Risk: Buyers may face potential title issues without protection from prior ownership claims.
This makes title insurance crucial when buying property conveyed through this type of deed.
Where Bargain and Sale Deeds Are Common
This deed type is typically used in:
- New York and New Jersey real estate transfers.
- County or state tax sales where governments sell foreclosed properties.
- Executor or trustee sales during estate or probate proceedings.
Because of its limited assurances, most buyers request a title insurance policy to guard against potential ownership disputes.
Related Real Estate Concepts
- General Warranty Deed – offers the highest level of title protection for buyers.
- Special Warranty Deed – provides limited guarantees, similar to a bargain and sale deed.
- Quitclaim Deed – transfers any ownership interest without warranties or title protection.
Frequently Asked Questions About Bargain and Sale Deeds
Is a bargain and sale deed the same as a warranty deed?
No. A warranty deed includes guarantees against all title defects, while a bargain and sale deed only implies ownership without full warranties.
When is a bargain and sale deed used?
These deeds are typically used in tax sales, foreclosures, or estate transfers where the seller cannot guarantee the property’s title history.
Should I buy title insurance with a bargain and sale deed?
Yes — title insurance is strongly recommended since this deed provides minimal protection against previous ownership claims.