Bargain and Sale Deed

What Is a Bargain and Sale Deed?

In real estate, a deed is the physical document used to transfer ownership of property. Deeds differ primarily in the level of guarantees (warranties) the seller makes to the buyer.

A bargain and sale deed falls in the middle of the spectrum of protection. By signing it, the seller (grantor) implies that they actually own the property and have the right to convey it. However, the seller makes zero warranties that the title is free of defects or liens. If a buyer purchases a property with a bargain and sale deed and later discovers an unpaid $50,000 construction lien from a previous owner, the buyer cannot sue the seller for breach of warranty.

Comparison to Other Deeds

Understanding where this deed fits in Florida real estate is critical:

• General Warranty Deed — The highest level of protection. The seller guarantees the title is perfectly clear and promises to legally defend the buyer against any claims, even those predating the seller's ownership. This is the standard for traditional residential sales.
• Special Warranty Deed — The seller guarantees the title is clear, but only against defects that occurred while the seller owned the property. Common in commercial real estate and REO (bank-owned) sales.
• Bargain and Sale Deed — The seller implies they own it, but makes no promises about liens or defects.
• Quitclaim Deed — The lowest level of protection. The seller doesn't even guarantee they own the property; they simply transfer whatever interest they might have. Common in divorces or transfers between family members.

When Are They Used in Florida?

Because they offer so little protection, bargain and sale deeds are rarely used in standard residential transactions. They are most commonly seen in situations where the seller acquired the property involuntarily and knows nothing about its history, such as:

• Tax Sales — When a county sells a property for delinquent property taxes, they issue a tax deed (which is essentially a statutory bargain and sale deed). The county makes no guarantees.
• Foreclosures and Bankruptcies — Court-appointed trustees or banks selling foreclosed properties often refuse to warrant the title.

Buyers accepting a bargain and sale deed must obtain a thorough title search and robust owner's title insurance to protect themselves.

Related Terms

• Deed — The instrument of transfer
• Quitclaim Deed — Offers even less protection
• Title Insurance — Critical when warranties are not provided

Barnes Walker Real Estate Closings

Barnes Walker's real estate attorneys draft the appropriate deeds for complex property transfers and ensure buyers are fully protected with comprehensive title insurance. Request a legal inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC