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

(1) The exposed trim and molding surrounding a door or window. (2) Woodwork which encases a pipe or structural member. (3) Method of creating a form for the pouring of concrete. ...

Similar property. Comparing like property. properties that are side by side but do not meet. They are in the same direction with a constant distance. ...

Transfer of personal property via a will as a gift to the recipient. ...

The concept of a release can define various meanings in the financial and real estate business. Typically, it establishes a discharge or literal escape from a loan borrower's economic ...

A reduction in structural value from all reasons except physical failure. For example, a commercial building having an outdated elevator or electrical wiring system is experiencing ...

In a broader sense, Full Disclosure means presenting all information (significant or not, classified or not) related to a certain matter. In Real Estate, the term “Full ...

Plywood whose surface is given parallel scratches or grooves in the manufacturing process. It provides, increased bond to adhesives, mortar, plaster, or stucco as well as giving a grain ...

Expenditures incurred to initially purchase property, including incidental costs necessary to put the property into existing use and location. This cost is then depreciated over the assets ...

A proposal to buy property at a specified price. The seller of the property has the options of accepting the offer, rejecting it, or making a counteroffer. For example, John signs a listing ...

Popular Real Estate Questions