Statutory Warranty Deed vs Bargain and Sale Deed
I was recently asked the difference between a statutory warranty deed and a bargain sale deed.
A statutory warranty deed is the typical type of deed given in a real estate transaction in the state of Washington
When a property is transferred there are certain guarantees that the seller is giving to the buyer.
They are guaranteeing that
1. they had legal ownership of the property
2. that they have the authority to pass on the title
3. that the title is free of any encumbrances
4. that the buyer’s ownership won’t be challenged
5. the seller will defend against challenge to buyers title.
The bargain and sale deed is usually given by somebody who hasn’t lived at the property like a bank after a foreclosure or the personal representative in an estate sale.
They are basically just giving a guarantee that they own the property and that they have the ability to transfer the title but they’re not guaranteeing against any encumbrances.
Title insurance is usually the answer to taking care of the problems that arise and need to be addressed on the property.