Exactly what is a Bargain And Sale Deed?
Hi there. I would like to know more about a Bargain and Sale Deed. Exactly what it is used for, and is it a good way to transfer property and whatever else you can tell me about it.
http://www.dummies.com/education/law/granting-titl...
I'll leave it to others to suggest whether they're "good" or not...
I've got a potential deal in Indy in which seller is transferring title through Bargain and Sale Deed. Reading the dummies.com link, still difficult to determine how to proceed. I've reviewed numerous RE contracts previous to this one and never come across this type of title transfer.
Should I tread lightly? Pay for legal review/consult? I this standard in certain situations?
Any input would be tremendous.
There are several deeds for different circumstances.
Bargain and Sale Deed is a legal transfer of real property without any covenants, which are just restrictions on the use of the property. Examples would be setbacks and easements.
It's not the best instrument to use because it usually comes without a warranty of title.
It's used a lot by government sales, sheriff sales, and the like.
@Christopher Phillips thanks for your reply. I know I can hire an attorney to perform a silent deed action if anyone comes forward with claims but is there anything I can do preemptively to ensure I have a clean title now? My plan is to BRRRR so I'll need a clean title in six months to finance the deal and pull capital out.
You should speak with a title company about it.
They’ll be able to give you some deeper insight and if you’ll be able to get a title policy.
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Originally posted by @Kevin D.:
@Christopher Phillips thanks for your reply. I know I can hire an attorney to perform a silent deed action if anyone comes forward with claims but is there anything I can do preemptively to ensure I have a clean title now? My plan is to BRRRR so I'll need a clean title in six months to finance the deal and pull capital out.
just close through a reputable title company.. get a title commitment read it .. then go from there.
@Jay Hinrichs @Christopher Phillips thanks so much for helping me to protect my floor. I’ll work with my agent to get a title company lined up. Thankfully the process doesn’t sound tremendously dissimilar from the purchase I made previously.
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Keep in mind in California we call them Grant deeds... in other states they are bargin and sale and warranty deeds.
what you don't want though for sure if you can help it is as quit claim deed.. that can be a problem for insurance in the future.
Interesting points made here. I used to do title work nationwide for infrastructure companies.
Keep in mind (1) the "type" of Deed is often chosen based on geography. For example, here in Eastern and Central Mass, a Quitclaim Deed is basically the ONLY Deed. You'll never find a Boston Owner grant a Warranty Deed**. You can find some Warranty Deeds still floating around Western Mass, but it's not common by any means. That may also be in-part for the following reason:
(2) You can never GRANT better covenants than you received. If you received a Warranty Deed, then you can grant via a Warranty Deed, a Special Warranty Deed, a B&S Deed, or a Quitclaim Deed. However, if you received Title via a Quitclaim, then you can never grant a Warranty Deed to your future buyers... because the chain on that warranty was already broken prior to your acquisition.
Before you reject the form of Deed you're being offered out of hand, see what Deed was granted to the Seller.
** But we also offer the Torrens System in Mass. For properties in that System., (AKA Registered Land, AKA "land court transactions") the State certifies Title to your property...and can do so, despite the fact that you acquired via Quitclaim. It's not in-favor now, but lots of properties in Mass are Registered Land, and you can still put a new property into the system, if you wish.
The Statement , "All Real Estate is Local" goes for forms of transactional documents, too.
@Jay Hinrichs you mentioned..
what you don't want though for sure if you can help it is as quit claim deed.. that can be a problem for insurance in the future.
What kind of deed or commitment should I push for instead?
Is having Bargain and Sale Deed a problem for reselling 6 months down the road?
@Kevin D. how did this deal turn out?
Did you in fact BRRRR this property?
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Originally posted by @Eric Roloson:
@Jay Hinrichs you mentioned..
what you don't want though for sure if you can help it is as quit claim deed.. that can be a problem for insurance in the future.
What kind of deed or commitment should I push for instead?
Is having Bargain and Sale Deed a problem for reselling 6 months down the road?
talk to your local title company.. WFG has an office in Vancouver so does fatco etc.. they will tell U and that's who you want to take your advice from
Thanks! I'll do exactly that