Definition of "After-acquired title"

The after-acquired title is used in property law when a property seller acquires the property’s title once they already sold the property to the buyer. In this situation, the title is automatically transferred to the buyer through the after-acquired title. The after-acquired title is held by the buyer as the seller only acquired the title once the property was already sold. Thus, the title can not go to the seller as they no longer own the property.

What is an After-acquired Title?

The after-acquired title’s legal doctrine is used when ownership of the property is transferred to its new owner. If the seller did not have the property’s legal title when the transaction took place but later acquired it, the property title is automatically vested to the new buyer. 

Through the after-acquired title, the property can not be sold by the previous owner later on because the title states who the current owner is. Once the buyer has the after-acquired title, the seller can not claim ownership of the property against the buyer.

Exceptions from the After-acquired Title Doctrine

While it works as equitable relief for both parties involved in the property transaction, the after-acquired title has some limitations. The following rules should be taken into consideration whenever a transfer of property takes place for example in Texas.

  • Limited to the conveyed estate - reserved estates, excepted interests, or interests that weren’t transferred are excluded;
  • Limitation to oil and gas lease - mineral interest is excluded;
  • Public Lands - tries to transfer public land by private individuals are excluded;
  • Title acquired by trust - this is covered by subsequent title;
  • Quitclaims - a quitclaim does not guarantee that the title passed is valid.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Legal responsibility for something. For example, an owner of commercial property (e.g., restaurant) is legally obligated for damages on that property (e.g., restaurant patron falls and ...

The right to possess, exclusively occupy, enjoy, control, and dispose of real estate. Ownership rights to realty are granted by the ownership of a title to real property. ...

Same as term soil porosity: Extent to which soil has cavities or pores, thereby allowing water to pass through. ...

Agreement to exchange real estate upon specific terms. ...

Buildings in England in the 16th and 17th century with strong foundations, supports, studs, and knees. In American architecture this originally building has been combined with the English ...

The equity in property because of work in it by the buyer or holder which directly increases its value. ...

Payment of the minimum tax by using legal tax planning opportunities such as estate planning. The use of tax avoidance strategies is a sound approach to retaining cash flow. On the other ...

To sign a note on behalf of another individual and, therefore, to guarantee payment. The cosigner is responsible for the loan if the borrower defaults. Such an agreement may occur in ...

Descriptive of the architectural development of property in a certain area. For example, a housing subdivision may use very similar building architecture throughout the development. All the ...

Popular Real Estate Questions