Definition
Estoppel by deed prevents a grantor from claiming they owned property they conveyed if they later acquire that property. The doctrine protects innocent grantees who relied on the conveyance.
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Estoppel by deed works alongside the after-acquired title doctrine. If someone conveys property to you via a recorded deed but doesn't actually own it, and then that person later acquires the property, they're estopped (prevented) from claiming it as their own—it goes to you instead. The doctrine is based on fairness and preventing fraud. By making a conveyance, a grantor implicitly represents they have title to convey. If they later acquire that title, equity prevents them from taking it back from the innocent grantee who relied on the deed. Estoppel by deed also prevents a grantor from claiming that the grantee's title is defective when the grantor is responsible for the defect. Modern title insurance largely supersedes this doctrine's practical importance, but it remains an important equitable principle. Estoppel by deed has been adopted in most U.S. jurisdictions and protects innocent purchasers who rely on recorded instruments.
Pro Tip
Estoppel by deed provides legal protection, but get a title commitment before closing rather than relying on estoppel.
Example
Karen sells a house to David through a recorded deed, but Karen doesn't actually own it. Later, when Karen's aunt dies and leaves Karen that very house, Karen is estopped from claiming it—the title passes to David because he relied on her conveyance.