A bargain and sale deed is used to sell or transfer real estate, with the seller making no promises that the property title is free of defects or other encumbrances. The seller, however, does provide one guarantee: they own the property and have the sole authority to transfer it. The seller makes no guarantee for anything else, such as third-party claims or unpaid tax liens from before the seller’s ownership period. The buyer is legally and financially responsible for them once the deed has been signed & duly executed.
During negotiations, the buyers may sometimes call for specific guarantees, covenants, or assurances to be explicitly included in the deed. A bargain and sale deed with covenants is similar to a special warranty deed and may include guarantees such as that there are no outstanding property taxes, or no undisclosed debts or liens on the property.
Common Use Cases
With no explicit or implied guarantees, the buyer may find themselves in a tough spot. It can be worse if the seller has little to no knowledge of the history or legal status of the property. With such little protection from risks & liabilities, why will a buyer sign a Bargain and Sale Deed?
The truth is, BaS deeds are not common when it comes to traditional buying and selling of real estate. But their use has gained popularity in certain types of transactions, such as:
- Trusted Transfers: Both parties trust each other—say, they are related to each other as siblings, parent-child, spouses, relatives, or close friends
- Foreclosure & Tax Sales: The seller is not sure about the property history or chain of title—e.g., foreclosing lenders, sheriffs, trustees, and tax authorities typically won’t promise a clean title because they don’t know the property’s history, so they use BSDs to avoid any financial or legal liability in the future
- Settlement of a Deceased Person’s Estate: If the grantor is the Executor of a dead person’s estate, they are usually not in a position to make full warranties about the property’s past, so they convey title to the grantee (heirs or other named beneficiaries), with limited or no warranties, relying entirely on the probate process
A Step-by-Step Guide to Using a Bargain and Sale Deed Template (like our free one!)
Filling out a property deed on your own can feel daunting at first. But with a bit of guidance from our side and some research on your part, you can learn to draft one correctly, avoid common pitfalls, and record the deed with your county the right way. Plus, you’ll know exactly when to ask a local attorney for help.
Below, I provide a quick & easy breakdown of each fillable section in our template. I also add legal guardrails and useful practical tips so you have all the information & guidance you need to fill in, customize, and execute the deed on your own.
Grantor/grantee details
Identify the person transferring the title (or grantor) and the person receiving the title (the grantee) as accurately as possible, ensuring there is no doubt or confusion about who is conveying the property to whom:
- Full legal name exactly as it appears on a government ID (passport, driver’s license).
- Legal Status: Specify whether the grantor is an individual or a legal entity (e.g., corporation, LLC, charitable trust). If it’s an entity, include the state where it is registered (e.g., Texas, New York).
- Mailing address: Provide the complete postal address (including street number, city, state, ZIP, etc.) to ensure accurate records and proper delivery of formal notices.
Financial consideration clause
Any deed involving a commercial sale is signed after the grantor receives value from the grantee. That value, called the consideration, should be stated in the deed so there is a permanent record of what was exchanged and when.
Even though a Bargain and Sale deed is not a bill of sale per se, a precise mention of the paid price protects both parties from future legal disputes while also supporting transfer-tax reporting and recording.
The ‘Not yet due and payable’ clause
In our template, we use the phrase “taxes & assessment not yet due and payable” to refer to any property taxes, HOA assessments, or special district charges that may come up in a future period. Once the deed is signed, the buyer is responsible for future tax bills and assessments and cannot demand that the seller pay those after closing.
Legal Description of the Property
A deed is only as strong as its property description. A legal description allows you to identify the exact land or unit being conveyed, so there is no doubt about what changed hands.
What to include
- Property type: State whether it is residential, commercial, or undeveloped land. If it is part of an HOA, condo, or planned development, say so.
- Location: In addition to the state and county where the property lies, also provide the full street address, including street number, street name, building name, city, state, and ZIP code.
But here’s the thing. Just a street address does NOT constitute the full legal description of a property. You must also include:
- Lot and Block
- Metes and Bounds
- Governmental surveys
- Geographic coordinates (for large or irregular parcels of land)
- Infrastructure details – such as property boundaries, sewer and utility lines, access drives, and rights-of-way (if relevant)
Why this matters
A complete legal description of the property:
- Makes the deed traceable in land & tax records, ensuring all official notices like tax bills and HOA letters reach the right place
- Reduces boundary disputes and survey errors in sales, refinancing, or construction
Tax Map Reference
In the blank space provided, jot down the exact tax map reference tied to the property. The TMR is the key location identifier of the property for the local government. It points the assessor and recorder to the exact map page and grid where the property appears, so they can trace it in land and tax records.
If you can’t find this number, run a quick online search on the local tax collector’s website and search by owner, address, or APN (Assessor’s Parcel Number). You can also find it on a recent tax bill or statement.
Executing the Deed: Sign, Notarize & Record
Until a deed is properly executed and recorded, it does not protect the buyer against any future claims of defective title or past encumbrances.
Follow these step-by-step instructions to make your deed legally effective and easy to record.
- Signing the deed: The grantor must sign the deed, usually at closing when payment changes hands. If a trustee or executor is signing, include the title and attach any required authorizing documents.
- Add Witness Signatures (if applicable): In some states, the deed must also be signed by independent witnesses (usually one or two). For example, Florida and South Carolina require two witnesses, while Georgia typically requires one witness (plus a notary) for recording, and in California/ New York, no witness signatures are required at all.
- Notarization: Most U.S. states require property transfer deeds to be notarized. Notarization involves signing the deed in front of the Notary Public, who then adds their name, signature, and official seal/stamp after confirming:
- The identity of the grantor and witnesses
- That the grantor is of sound mind
- That the grantor is willing to convey the property to the grantee
A printable Notarization Form with spaces for notary name, signature, seal, and commission expiration is present in the template. That said, some states may require specific wording. If your state uses a different acknowledgment, swap in the state-specific wording using an editable version of the template.
Recording the deed
Recording is the process of reviewing, indexing, and archiving a deed in public records. Once this is done, the original deed is returned to the specified address (see below).
- Where to file: Submit the signed and notarized deed to the county recorder, clerk, or register of deeds where the property is located.
- Fees and taxes: Pay the recording fee and any real estate transfer taxes applicable in your case.
The “For Recorder’s Use Only” section
These sections must be filled out by the recorder—usually by someone at the county clerk’s office or the local land registrar’s office:
Recording prepared by
Enter the drafter’s name and mailing address. This can be an attorney, title company, agent, or party. The recorder uses it to address any errors or mistakes before filing.
Return to
Enter the person or office who shall receive the original after recording. This is often the buyer, the buyer’s attorney, or the lender. Include a complete postal address and ZIP code.
Mail tax statement to
Name and mailing address for future property tax bills and assessment notices. This is usually the new owner’s address, which may not be the same as the property address.
What is a parcel number?
Assessor Parcel Number (or APN) is a unique ID assigned by the county assessor to track property tax and ownership records. Copy it carefully from a recent tax bill. If unknown, confirm with the assessor or recorder. Enter the full number without typos, as individual digits often encode subdivision, block, and lot.
Pro Tips for Smooth Execution and Recording
- The grantor and witnesses (if applicable) must bring valid ID so the notary can confirm their identity.
- Do NOT make corrections by pen once the deed has been notarized. If there’s an error, use a Corrective (Bargain and Sale) Deed that explains the correction and re-records it.
- After recording, keep certified copies, update insurance, HOA, and utilities, and store the original in a safe place.
State Coverage
Bargain and sale deeds are only recognized in 5 states – Colorado, New York, Vermont, Washington, and Wyoming. In the remaining states, title companies may recommend using a special warranty deed instead. Contact a real estate lawyer in your area to confirm which type of deed works best for you.
Comparison with Other Types of Deeds
Unlike a general warranty deed, a bargain and sale deed does NOT offer the same level of protection against existing claims or title effects, so buyers tend to avoid them. That being said, a BSD is still stronger than a quit-claim deed because the grantor is actually conveying title for value. A quitclaim, by contrast, only releases whatever interest the grantor may have at that moment, which could be nothing.
Pro Tips for Buyers
If you’re a buyer who wants to minimize the risk of legal or financial liabilities in the future, you can:
- Order a Title Search: To find out if there are any defects affecting the title, and if the property is free from encumbrances, such as unpaid taxes, ongoing mortgages, outstanding liens, etc.
- Get Title Insurance: This protects buyers if a hidden title defect surfaces later—either by paying to cure the problem, defending the buyer in court, or reimbursing actual loss (usually up to the policy limit).
Summary
A bargain and sale deed is used to transfer ownership of real property from a seller (grantor) to a buyer (grantee). It confirms that the seller has ownership and the right to convey the property, but provides little or no guarantee that the title is free from liens, debts, or other claims. The Bargain and Sale deed is commonly used in foreclosures, tax sales, estate transfers, or intra-family conveyances, particularly in states such as New York, Colorado, Vermont, Washington, and Wyoming.
Legal Disclaimer
This template is provided for informational purposes only and does not constitute legal advice. Consult a licensed attorney to ensure the document meets your specific legal needs before using it.
