I Have A Friend That Purchased A Home In June And The Deed States That It Is A Bargin Sale Deed. I Would Like To Get More Information Concerning That And I Would Like To Know If That Was A Good Move For Her To Do.

LisaB4657

A bargain and sale deed is a type of deed where the seller is saying that they are transferring their ownership to the buyer. The type of deed used most often in NJ is a bargain and sale deed with covenants against grantor's acts, which means that the seller is transferring their ownership to the buyer and they swear that they didn't do anything to mess up the quality of the title.

You can go to http://en.wikipedia.org/wiki/Deed to read more about the different types of deeds.

As long as your friend had a title search performed and obtained a title insurance policy as part of the purchase then the deed is fine.

Fr_Chuck

A Bargain and sale deed contains no real warranties against encumbrances, it only implies that the grantor holds title and possession of the property. Because the warranty is not specifically stated the grantee has oittle legal recourse if defects later appear in the title. In some areas a covenant against encumbrances initiated by the grantor may be added to to deed. It gives more protection than a quck claim deed, but less than a warranty deed

So basicly it says that the person who sold the property had the legal right to sell it, but they will not warrant that there are no other liens against the property.

So as long as they did a good title search and bought title insurnace they should not have anything to worry about

ikaplan

The questioner asks about a "bargain sale" the other answers address a "bargain and sale deed." In fact, a bargain sale is a sale of real property for less than market value to a non-profit organization with the difference amounting to a gift with the potential for a charitable deduction.