New York Real Estate Salesperson ExaminationProperty OwnershipMedium
A buyer is purchasing a property in New York and discovers that the seller's deed contains the phrase 'grant, bargain, and sell.' Which type of deed is most likely being conveyed?
- ABargain and Sale Deed with Covenants
- BSpecial Warranty Deed
- CQuitclaim Deed
- DGeneral Warranty Deed
Show answer & explanationAnswer & explanation
Correct answer: A. Bargain and Sale Deed with Covenants
The phrase 'grant, bargain, and sell' is characteristic of a Bargain and Sale Deed, which implies the grantor has title but offers no warranties against encumbrances unless 'with covenants' is added, in which case it warrants against the grantor's own acts.
Why the other options are wrong
- B. A Special Warranty Deed warrants title only against defects arising during the grantor's ownership, not using 'grant, bargain, and sell' as its primary conveying phrase.
- C. A Quitclaim Deed offers no warranties and simply transfers any interest the grantor may have, without the 'grant, bargain, and sell' phrasing.
- D. A General Warranty Deed contains the strongest covenants, typically including 'warrant and defend title' against all claims.
Bargain and Sale Deed
A deed that implies the grantor holds title to the property, but does not provide express warranties against encumbrances. In New York, it's often used with a covenant against grantor's acts.
- Implies grantor has title
- Does not contain full warranties of title
- Often includes a covenant against grantor's own acts (Bargain and Sale Deed with Covenants)
Memory trick: Deeds are like 'Promise Papers'—some promise a lot, some promise very little.