What is a Bargain and Sale Deed?
In the realm of real estate transactions, different types of deeds play distinct roles in conveying property ownership. One such deed that holds significance in Washington is the Bargain and Sale Deed. Understanding its characteristics and implications is essential for individuals engaging in property transactions in the state. In this blog, we’ll delve into what a Bargain and Sale Deed entails, its features, and its role in Washington real estate.
The Basics of a Bargain and Sale Deed:
- Definition: A Bargain and Sale Deed is a legal document used to transfer real property from a seller (grantor) to a buyer (grantee). Unlike a Warranty Deed, a Bargain and Sale Deed does not provide explicit guarantees regarding the title’s history. Instead, it implies that the grantor has the legal right to transfer the property.
- Limited Warranty: While a Bargain and Sale Deed doesn’t offer the comprehensive warranty found in a General Warranty Deed, it does provide a limited warranty. The grantor assures that they have not done anything to harm the title during their ownership but does not explicitly warrant against title defects that may have existed before their ownership.
Key Features of a Bargain and Sale Deed:
- Implied Covenant: The use of the term “bargain and sell” in the deed implies a covenant that the grantor has the right to convey the property. However, this covenant is not as extensive as the warranties found in other types of deeds.
- No Explicit Warranty of Title: Unlike a Warranty Deed, a Bargain and Sale Deed lacks explicit guarantees regarding the title’s history. It doesn’t include promises such as the absence of encumbrances or the grantor’s liability for defects that predate their ownership.
- Suitable for Certain Transactions: Bargain and Sale Deeds are often used in specific circumstances, such as the sale of a home in a probate, or other transactions where the buyer is comfortable assuming some level of risk regarding the property’s title.
Use Cases for Bargain and Sale Deeds:
- Intra-Family Transfers: When transferring property between family members, especially when the parties trust each other, a Bargain and Sale Deed may be suitable. It facilitates the transfer without extensive warranties.
- Executor’s Deed: In cases where property is being transferred from an estate to a beneficiary or heir, an Executor’s Deed may be a Bargain and Sale Deed. This allows for a relatively straightforward transfer without extensive warranties.
- Tax Sales and Foreclosures: Bargain and Sale Deeds are also commonly used in tax sales or foreclosures. In such situations, buyers may be willing to assume certain risks associated with the property title.
Washington State-Specific Considerations:
- Commonly Used: Bargain and Sale Deeds are commonly used in Washington real estate transactions. However, it’s crucial for both buyers and sellers to understand the implications and limitations of this type of deed.
- Additional Documents: Depending on the circumstances, additional documents such as a Real Estate Excise Tax Affidavit may be required when executing a Bargain and Sale Deed in Washington.
In Washington, a Bargain and Sale Deed serves as a legal instrument for property transfers, offering a limited warranty compared to more comprehensive deeds. While it may lack explicit assurances regarding the title’s history, it is a valuable option in specific real estate transactions, such as intra-family transfers or tax sales. Individuals involved in property transactions in Washington should carefully consider the nature of the deed used and, if necessary, seek legal guidance to ensure that the transfer aligns with their specific needs and expectations. Understanding the nuances of a Bargain and Sale Deed empowers both buyers and sellers to make informed decisions in the dynamic landscape of real estate transactions in Washington.
If you need assistance with Deeds give our office a call or text at (206) 408-8158. You can also learn more about our Estate planning services by visiting our website: https://www.dallawfirm.com or our YouTube channel: https://www.youtube.com/@dallawfirm.
19803 1st Avenue S.
Normandy Park, WA 98148
T (206) 408-8158
F (206) 374-2810
EDITOR’S NOTE: Sponsored Posts like this are paid, “Native Advertisements” that help businesses and organizations improve their internet presence and all-important SEO. South King Media also underwrites fundraisers from local nonprofits. To learn more about how your business or organization can directly reach our expanding, engaged audience in South King County, please email Theresa Schaefer at [email protected].