BARGAIN AND SALE Meaning and
Definition
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Bargain and sale is a legal term that refers to a type of property transaction where the seller conveys or transfers ownership of a property to the buyer for a certain consideration or price. It is a term commonly used in real estate or property law.
In this type of transaction, the seller is known as the grantor, and the buyer is known as the grantee. The grantor agrees to sell the property to the grantee and transfers the ownership by executing a deed, known as a bargain and sale deed. This type of deed differs from a warranty deed, as it does not provide any warranties or assurances regarding the property's title or condition. It simply transfers the ownership to the buyer.
The consideration or price for the property may be monetary, such as a specified sum of money, or non-monetary, such as other property or goods. It is an essential element of the agreement, as it represents the value or exchange that forms the basis of the transaction.
Bargain and sale deeds are typically used in transactions where the seller does not wish to offer any guarantees or warranties regarding the property's title or condition. As a result, the buyer assumes any risks associated with the property's defects or liens. However, it is important to ensure that the property has a clear and marketable title before entering into a bargain and sale transaction.
