Untitled Document

The BARGAIN AND SALE DEED. (RCW 64.04.040) This form of Deed considerably restricts the warranty coverage provided to a Grantee. When conveying property via a Bargain and Sale Deed (BSD), the Grantor is stating the following:

That the Grantee lawfully owns the property in Fee Simple;
That the property is free from encumbrances CAUSED BY THE GRANTOR (except for rents and services that may be reserved); and
Warranting that the Grantee shall have quiet enjoyment of the property against the Grantor.

Thus, the Grantee’s protection from unexpected encumbrances extends only to that time the Grantor owned an interest in the property. While not as helpful to a Grantee as a Warranty Deed (whose protections extend much further), it can be useful. BSD’s are most often used where a Seller has some concern about how prior owners may have encumbered the property. The Seller can limit their liability regarding encumbrances to just that time they themselves owned it. The advantage to the Buyer is that they can purchase the property from an otherwise unwilling Seller. To protect themself, the Buyer should inspect the property records thoroughly, and perhaps purchase more extensive title insurance coverage (depending on how murky the records are).

The QUIT CLAIM DEED. (RCW 64.04.050) Compared to a Warranty or a Bargain and Sale Deed, a Quit Claim Deed (QCD) conveys from Grantor to Grantee only that interest the Grantor has in the property. Paraphrased, the Grantor is saying, “I may not even have an interest in this property, but if I do, I give whatever I have to you.” It can be useful in resolving boundary line disputes (along with any necessary boundary line adjustment documents), transferring property between family (or ex-family) members, and to resolve competing claims to property.

Most properly, because of its very limited nature, a QCD should be used to release an interest in property that might otherwise “cloud” the title. The better practice when conveying property itself (rather than just an interest in it) is to use a Warranty or Bargain and Sale Deed. Because circumstances vary from transaction to transaction, it is a good idea to consult with an attorney to determine which kind of Deed to use.

Finally, a Quit Claim Deed does not unless specifically mentioned, transfer any after-acquired title the Grantor may receive. Again, it is a wise policy to consult briefly with an attorney as to exactly what language needs to be in the Deed.

This article contains information of general interest, and is not intended to be, nor should it be relied upon as a substitute for specific legal advice.