What type of deed implies ownership and possession but may be issued by a bank at a foreclosure sale?

The correct answer is the bargain and sale deed, which is commonly associated with situations like foreclosure sales. This type of deed conveys ownership and implies that the seller has the right to transfer the property, but it does not guarantee the quality of the title against any claims or encumbrances that may exist. In a foreclosure scenario, the bank is typically selling the property after taking possession, but it may not have conducted thorough investigations into any other liens or claims against the property that existed prior to the foreclosure. As a result, the buyer receives the property with the rights the bank had, but without the reassurance that the title is completely free of issues.

The other types of deeds—quitclaim, general warranty, and special warranty deeds—have different implications. A quitclaim deed transfers whatever interest the grantor has in the property without any warranties or guarantees about the title. General warranty deeds provide the highest level of protection by guaranteeing the title against all claims, both during and prior to the seller's ownership. Special warranty deeds offer a limited warranty, covering only the period of the grantor’s ownership. Thus, in the context of a foreclosure where possession is implied but full assurances are not given, the bargain and sale deed is appropriate.