NCEES Principles and Practice of Surveying Practice Exam

What kind of covenants may be included in a modern Bargain and Sale Deed?

1. Exclusive ownership warranty.

2. Brief descriptions of maintenance obligations.

3. None, it’s strictly a bargain without any assurances.

4. Implied warranties against future claims.

The correct answer is: Implied warranties against future claims.

A modern Bargain and Sale Deed typically includes implied warranties against future claims, making this option the most relevant choice. This type of deed conveys property but does not guarantee the same level of protection as a warranty deed. However, it implies that the seller has a right to convey the property and that the property is free from any encumbrances made by the seller. These implied warranties serve to protect the buyer from claims that could arise from the seller's ownership of the property prior to the sale. While the seller does not provide explicit assurances about the absence of defects or issues with the title from previous owners, the general assumption is that the seller has not done anything that would interfere with the buyer’s ownership rights. In comparison, exclusive ownership warranties or explicit descriptions of maintenance obligations are not commonly associated with a Bargain and Sale Deed. Such warranties would usually be found in a warranty deed, which provides stronger protection for the grantee. Similarly, including detailed covenants about maintenance obligations is more typical in contractual agreements or property management arrangements rather than in a deed itself. Hence, this reinforces the validity of the implied warranties present in a Bargain and Sale Deed.