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

Linkage in real estate means the proximity of a particular piece of land to its originally intended function. In addition, linkage can refer to the time and distance between a ...

Mortgagor's signed statement that the stated remaining balance of a mortgage is correct and it is a property lien. This prevents a mortgagor from later stating the facts were ...

Decision rendered by a court of law. ...

Same as term lateral support: The right of a landowner to have lateral land support from adjacent properties. The right of lateral and subjacent support means that an adjacent land owner ...

The right to allow livestock to graze on a certain range or grazing lands. Grazing rights can be obtained through a lease or by contractual agreement stipulating the period of time and the ...

Income for investors arising from net long-term profits of a real estate mutual fund realized when the portfolio is sold at a gain. Fund managers pass on profits from sales of real estate ...

Insurance protection for the replacement cost of damaged property. Thus, the accumulated depreciation is not subtracted in determining the amount of reimbursement. ...

An arm’s-length transaction is a business deal, or transaction where the seller and buyer act independently of each other without influence on the other party. What sets these types ...

Putting a waterproofing substance on the exterior cement walls of the structure to prevent water from entering the interior of structure. The cracks in the walls are patched up. ...

Popular Real Estate Questions