PSI Virginia Real Estate Practice Exam

Which of the following statements is true about a Bargain and Sale Deed?

1. It includes warranties against all liens and encumbrances

2. It implies the grantor has the right to convey title

3. It automatically carries all warranties from the grantor

4. It guarantees a clear title to the grantee

The correct answer is: It implies the grantor has the right to convey title

A Bargain and Sale Deed is a type of deed that conveys real property without warranties against encumbrances and defects, except for the grantor's ownership right. This means that the statement regarding the implication that the grantor has the right to convey title is accurate. Such deeds imply that the grantor owns the property and has the authority to sell it, although they do not provide additional guarantees about the property's title or whether it is free from liens or encumbrances. In contrast, other types of deeds, such as a warranty deed, would offer more comprehensive warranties related to title and encumbrances. However, a Bargain and Sale Deed typically does not include warranties against all liens or encumbrances, nor does it guarantee a clear title or automatically carry warranties from the grantor. Therefore, the assertion about the grantor's right to convey title is the key element that distinguishes this type of deed and makes the statement true.