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

A right or portion of property reserved to the grantor in a conveyance by deed. Waiver of a requirement in a lease agreement such as the landlord allowing an old tenant to have a cat or a ...

Performance of a complete inventory of real property within a jurisdiction. A cadastral program produces the cadastral map. ...

Paneled brickwork between timber quarters, a framed wall, or partition. ...

Principle stating that all joint tenants must acquire their interest from the same deed or will. ...

Exterior wall not supporting a load, mostly found in office buildings. ...

Value of property is reduced form usage oven time. The problem is worsened when repairs and maintenance have not been made. ...

Insects that destroy the support wood in the structure of a building. Termite inspection should be periodically performed to detect their existence. If an infestation is confirmed, the ...

Section of the Internal Revenue Code that addresses tax-free exchanges of certain property. The general provisions for a tax-free exchange of real estate are that the properties must be ...

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

Popular Real Estate Questions