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After-Acquired Title

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Definition

After-acquired title doctrine means that if a grantor acquires title after conveying property, that later-acquired title automatically passes to the grantee. This doctrine protects innocent purchasers and encourages good-faith transactions.

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About this term

After-acquired title doctrine is an exception to the general rule that you cannot convey what you don't own. If Sam sells property to David but Sam doesn't have title at the time of sale, and then Sam later acquires title, that later-acquired title automatically vests in David. This doctrine protects innocent purchasers and encourages people to buy property in good faith, knowing they'll receive title even if the seller initially lacked it. The doctrine typically applies only when the original transaction was recorded as a legitimate conveyance (not when fraud is involved). After-acquired title doctrine doesn't apply everywhere—a few jurisdictions require title to exist at the time of conveyance. States following the doctrine protect subsequent purchasers and lenders who relied on recorded deeds, even when those deeds didn't convey perfect title initially. This doctrine has become less important with title insurance, which protects against such defects.

Pro Tip

After-acquired title provides a safety net, but use proper title insurance rather than relying on this doctrine.

Example

Tom sells a house to Lisa and records the deed, but Tom didn't actually own it at the time—the property was held in an estate being probated. When the estate closes two years later and Tom finally receives title, that title automatically transfers to Lisa under the after-acquired title doctrine.

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