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Legal Definitions - after-acquired title
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Definition of after-acquired title
Definition: After-acquired title refers to the title held by a person who buys a property from a seller before the seller receives the title to the property. The buyer automatically obtains the title upon the seller's receipt of the title.
For example, John sold his father's ranch to Sam before he received the title from his father's estate. Once John received the title and recorded it, the after-acquired title automatically passed on to Sam.
However, the after-acquired title doctrine generally does not apply when a seller receives title by quitclaim deed. The deed must explicitly state an intention to vest title in the seller for it to be automatically transferrable.
Another example of after-acquired title would be if a person bought a car from someone who did not yet have the title, but later obtained it. The buyer would automatically obtain the title once the seller received it.
The examples illustrate how after-acquired title works in situations where the seller does not yet have the title to the property or item being sold. Once the seller obtains the title, the buyer automatically receives it without any further action needed.
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Simple Definition
After-acquired title: When someone buys property from a seller who doesn't yet have the title, but later receives it, the buyer automatically gets the title. For example, if John sold his father's ranch to Sam before he officially inherited it, once John got the title, Sam would automatically get it too. This rule doesn't apply if the seller got the title through a quitclaim deed, which needs to specifically say that the seller gets the title.
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