Grant, Bargain & Sales Deed

To understand the intricacies of real estate transactions, grasping a Grant, Bargain, and Sale Deed (GBSD) is crucial. This legal instrument is employed in property transfers and defines the rights and responsibilities of both parties involved. Here’s a comprehensive overview of what a GBSD entails and how it functions in real estate transactions.

What is a Grant, Bargain, and Sale Deed?

A Grant, Bargain, and Sale Deed (GBSD) is a type of deed used to transfer ownership of real property from one party (the grantor) to another party (the grantee). Unlike a warranty deed, which guarantees the property’s title is free from defects, a GBSD offers limited assurances regarding the grantor’s ownership interest. Here are the key components that define a GBSD:

Critical Components of a Grant, Bargain, and Sale Deed:

Granting Clause: This clause explicitly states that the grantor (current property owner) is conveying the property to the grantee (new property owner). It does not imply any warranties or guarantees regarding the property’s title. Sample language includes: “Grantor grants, bargains, sells, and conveys unto Grantee.”
Limited Warranties: Unlike a warranty deed, which assures that the title is free from defects and encumbrances, a GBSD offers limited warranties. The grantor warrants that they have the legal right to transfer the property but makes no guarantees about its history or any potential claims against it.
No Assurances Against Encumbrances: A GBSD does not promise that the property is free from liens, easements, or other encumbrances. The grantee accepts the property with any existing encumbrances that may affect its title or use.
Typical Uses: GBSDs are commonly used in transactions where the seller (grantor) does not want to provide extensive warranties about the property’s history or condition. They are prevalent in tax sales, foreclosure auctions, and transactions involving inherited property where the grantor’s knowledge of the property may be limited.

Understanding the Functionality of a Grant, Bargain, and Sale Deed:

Legal Transfer: A GBSD legally transfers ownership from the grantor to the grantee. It specifies the parties involved, the property’s legal description and any monetary considerations (consideration) exchanged.
Recording Requirement: A GBSD must be recorded with the appropriate government authority. Usually, the county recorder’s office is legally valid. Recording ensures that the transfer of ownership is publicly documented, providing notice to future buyers and creditors.
Limited Protections: While a GBSD offers some assurance that the grantor has the legal authority to transfer the property, it does not protect the grantee against claims of prior owners, undisclosed liens, or other potential title defects.

Differences Between GBSD and Warranty Deed:

Warranty Deed: Offers extensive assurances that the property’s title is free from defects and encumbrances. It provides the highest level of protection for the grantee.
GBSD: Provides limited assurances regarding the grantor’s ownership rights and does not guarantee the property’s history or condition. It is suitable for transactions where the grantor’s knowledge of the property is limited or extensive warranties are not required.

Conclusion:

In real estate transactions, understanding the nuances between different types of deeds is essential for both buyers and sellers. A Grant, Bargain, and Sale Deed (GBSD) is a legal instrument for transferring property ownership with limited warranties. It offers basic assurances that the grantor has the right to transfer the property but does not protect the grantee against potential title defects or encumbrances. Before entering into a real estate transaction involving a GBSD, it’s advisable to seek legal guidance to ensure you understand the implications and protections provided by this type of deed.

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125