What is a bargain and sale deed?

A bargain and sale deed is characterized by its function in transferring property ownership while typically lacking any explicit guarantees regarding the title—this means it may come with or without covenants of warranty. When a bargain and sale deed is executed, the grantor conveys whatever interest they have in the property to the grantee but does not promise that the title is free from defects. Thus, the core feature of this type of deed is the transfer of interest without additional assurances about the condition of the title.

This distinguishes it from other types of deeds, such as a warranty deed, which guarantees a clear title and provides protections against claims. In contrast, a bargain and sale deed places the onus on the grantee, who must acknowledge the potential risks associated with the ownership of the property since the deed does not include any warranties about the property's title. Understanding this nuance is essential for anyone dealing with property transactions in Colorado or any other jurisdiction, as it affects both the rights of the buyer and the seller in a real estate deal.