What Is Bargain And Sale Deed And How Does It Work?
A bargain and sale deed is a type of deed that conveys legal title to property from one party to another. It is used when the seller does not have clear title to the property, but is making a promise that they have good title and will defend the buyer against any claims made by other parties. The seller is not providing any warranties or guarantees of title, however.
Benefits And Drawbacks Of Using A Bargain And Sale Deed
A bargain and sale deed is a type of deed used in real estate transactions to transfer property from one person to another. While it is not as common as a warranty deed, it does have its advantages and disadvantages.
Advantages:
The main advantage of using a bargain and sale deed is that it is simpler than other types of deeds. It does not require the same level of detail as a warranty deed, which can make it easier and faster to execute. Additionally, it does not contain any warranties or promises about the title to the property, meaning the seller will not be held liable if there are any issues with the title.
Disadvantages:
The main disadvantage of using a bargain and sale deed is that it does not provide the same level of protection as a warranty deed. Because it does not contain any warranties or promises, the buyer may not be able to rely on the seller if there are any issues with the title. Additionally, this type of deed does not provide any protection against liens or judgments on the property, meaning the buyer could be responsible for any outstanding debts or obligations.
How To Prepare And File A Bargain And Sale Deed: A Step-By-Step Tutorial
- Gather the necessary documents: In order to prepare and file a bargain and sale deed, you will need to gather the following documents:
- A copy of the existing deed that shows the current owner of the property
- The legal description of the property (including parcel number)
- A title search of the property
- A completed bargain and sale deed form
- Fill out the necessary paperwork: Once you have gathered the necessary documents, you will need to fill out the bargain and sale deed form. This form will require information about the current owner, the buyer, the property description, and any other pertinent information. Make sure all of the information is accurate and complete.
- Get the deed notarized: Once the form is filled out, you will need to get the deed notarized. This will require the signature of both the buyer and seller, as well as the notary’s signature and seal.
- File the deed with the local county recorder: After the deed is notarized, you will need to file it with the local county recorder. This will ensure that the deed is officially recorded and officially transferred to the new owner.
- Pay the applicable taxes and fees: Once the deed is filed, you may need to pay any applicable taxes and fees. This will vary depending on the state and county where the property is located, so make sure to check with your local government for more information.
- Send a copy of the deed to the new owner: Once the deed is officially recorded and the taxes and fees are paid, you should send a copy of the deed to the new owner. This will ensure that they have proof of ownership of the property.