the doctrine of after acquired title -fitzgerald

7/27/2019 The Doctrine of After Acquired Title -Fitzgerald

1/76

TheDoctrine

of

After

AcquiredTitle

PatrickW.Fitzgerald,Ph.D.,Ed.D.,J.D.


2/76

AfterAcquiredTitle:Overview

AfteracquiredTitleisalegaldoctrine

recognizedin

many

jurisdictions

which

provides

that,whenagrantorpurportstoconveyormortgage propertytowhichheisnotvested,anytitlesubsequentlyobtainedbythatgrantor

automaticallypasses

to

his

grantee

by

operation

oflaw.

Thepurposeofthisdoctrineistogiveeffectto

the

intent

of

the

parties

to

a

conveyance,

or

securityinstrument

as

evidenced

by

the

documentstheyexecute.


3/76


AfteracquiredtitleapplieswhenJoe,whohas

notinterest

in

the

land,

conveys

title

to

the

landtoMaryandthensubsequentlyacquires

titletothelandfromFred,whooriginallyheld

legaltitle

to

the

land.

At

the

time

Joe

acquires

title,suchtitleautomaticallypassestoMary.


4/76

AfterAcquired

Title:

Overview

Thisdoctrinehasbeencodifiedintoa

statutoryprovision

in

some

states

but

originallyitwasanequitabledoctrineto

preventunjustenrichment.

Asageneralprinciple,warrantydeedsand

grantdeedsaredeemedtotransferafter

acquiredtitle,

but

quitclaim deeds

do

not.


5/76


Afteracquiredtitlereferstoatitleheldbya

personwho

bought

property

from

aseller

whoacquiredtitleonlyafterpurportingtosellthepropertytothebuyer.

Whenaseller

conveys

land

to

another

on

the

beliefthats/hehadgoodtitletotheland,andlaters/heacquirestitletothatland,then

buyerautomatically

acquires

title

to

the

transferredland.


6/76


Assoonastheselleractuallyacquirestitle,

titlepasses

to

the

person

to

whom

it

was

sold.

However,thisdoctrineofafteracquiredtitle

generally

does

not

apply

when

the

seller

receivestitlebyquitclaimdeed.Thedeed

conveyingthelandmustincludewords

expressingan

intention

to

vest

title

in

the

grantee.


7/76

ExpressCovenants

Generally,thegrantorswarrantyextendsto

allcases

involving

afailure

of

title

to

land

purportedlyconveyedbythedeed.The

covenantofwarrantyinadeedisanexpress

covenant,and

aTexas

statute

provides

that

no

personshallbeobligatedtoinsertacovenant

of

warranty

in

any

conveyance.


8/76

ImpliedCovenants

Theseller,bytheuseoftheword"grant"or"convey"

inany

conveyance

of

land,

will

give

rise

to

two

implied

covenants.

Thefirstsuchcovenantisthatthegrantorwarrantstothegranteethathehasnotpreviouslyconveyedthe

sameestate,

or

any

right,

title,

or

interest,

to

any

personotherthanthegrantee.Second,thegrantorwarrantsthattheestateconveyedisatthetimeofthe

execution

of

such

conveyance

free

from

encumbrances.Theterm"encumbrances"includestaxes,assessments,andallliensuponrealproperty.


9/76

ImpliedCovenants

Althoughtheseimpliedcovenantsariseby

operationof

law

when

the

words

"grant"

or

"convey"areusedintheconveyance,the

grantornonethelessmaynegateorrestrain

thecovenants

by

express

terms

contained

in

theconveyance.


10/76


11/76

AfterAcquiredTitle

Definition

Doctrinebywhichthetitleofrealestate,

previouslyunsuccessfully

transferred

because

oflackofpossessionbygrantor,automatically

passestothebuyeruponacquisitionbythe

grantorand

is

based

on

the

acquisition

of

title

byestoppel.


12/76

AfterAcquiredTitle

Definition

Titlethatvestsautomaticallyinagranteewhen

acquiredby

agrantor

who

purported

to

sell

the

propertybeforeacquiringtitle;also: adoctrinethatrequiressuchvesting(compareestoppelbydeed)

NOTE:Thedoctrineofafteracquiredtitlegenerallydoesnotapplywhenthegrantorreceivestitlebyquitclaimdeed;tovesttitleinthegrantee

the

deed

must

include

words

expressing

suchanintention.


13/76

AfterAcquiredTitle

Definition

Thesocalled"doctrineofafteracquiredtitle"

dealswith

the

rights

of

agrantee

(and

his

successors)whoacceptsadeedorother

conveyancefromagrantorthenwithouttitle,

butwho

thereafter

acquires

it.


14/76


15/76

AfterAcquiredTitle

Definitionand

Example

1

AfterAcquiredTitletopropertyacquiredby

someone

after

that

person

has

purportedly

transferredthepropertytosomeoneelse.Assoonastheselleractuallyacquirestitle,itpassestothepersontowhomitwassold.

Forexample,

John

signs,

acknowledges,

and

recordsadeedofhislatefather'sranchtoSam,eventhoughJohnhasnotyetreceivedtitlefromhisfather'sestate.WhenJohngetsthetitlefromhis

father's

estate

and

records

it,

the

after

acquiredtitlegoesautomaticallytoSam.


16/76

AfterAcquiredTitle

Definitionand

Example

2

TheAfterAcquiredTitle Doctrineisalegal

doctrineunder

which,

if

agrantor

conveys

whatismistakenlybelievedtobegoodtitleto

landthatheorshedidnotown,andthe

grantorlater

acquires

that

title,

it

vests

automaticallyinthegrantee.

A

practical

example

is

Husband

and

Wife

own

Blackacre.


17/76

AfterAcquiredTitle

Definitionand

Example

2

Wifeisawardedthepropertythroughadivorce

decree.Wife

sells

the

property

to

abonafide

purchaserforvalue.WifeexecutesaWarranty

Deedtothepurchaserandthedeedisproperly

recorded.

Subsequently,adeedfromtheHusbandtothe

Wifeisrecorded.UndertheAfterAcquiredTitle

Doctrine,the

interest

received

by

the

wife

automaticallytransferstothenewpurchaser.


18/76

AfterAcquiredTitle

Definitionand

Example

3

Afteracquiredproperty isrealpropertyor

personal

party

to

which

party

A

obtains

title

onlyafter

falsely

selling

it

to

party

B

for

value

whenpartyAdidsowithoutpropertitle.

AnexamplewouldbeColonelSanders pretends

tosell

"My

Old

Kentucky

Home"

to

Boone

for

$1000(US)butdoesnotownthepropertyatthetimeandthenusesthemoneytoactuallybuythatsamepropertyfromthetrueowner.

TheapparentoutcomewouldbeCol.SandersownsthepropertyandBoonehaslost$1000.


19/76

AfterAcquiredTitle

Definitionand

Example

3

Becausetheresultofthesetoftransactions

would

be

an

injustice,

a

legal

concept

called

the

"Afteracquired

title

doctrine"

vests

the

legal

title

inthepropertyinpartyBeventhoughbuyingitbeforepartyAhadlegaltitletothepropertyand

thereforehad

no

right

to

transfer

the

title.

Thisisanapplicationoftheprincipleofequityto

propertylaw. Historically,equitywasappliedinEnglandinspecialchancerycourts,butintheUS,remedies

at

both

law

and

equity

are

given

in

a

singlecourt.


20/76

AfterAcquiredTitle

Definitionand

Example

4

Afteracquiredtitle:titletopropertyacquired

afterthe

owner

attempts

to

sell

or

transfer

thetitletoanotherpersonbeforehe/sheactuallygotlegaltitle.

Whenthe

title

is

acquired

by

the

seller

in

this

papershuffle,titleautomaticallygoestothepersontowhomitwassold,passingthrough

theperson

who

acquired

title

"like

adose

of

salts"onitswaytothenewpurchaser.


21/76

AfterAcquiredTitle

Definitionand

Example

4

Example:Johnsigns,acknowledges,and

recordsadeed

of

the

ranch

to

Sam,

but

John

hasnotyetreceivedtitlefromtheestateof

hislatefather.

WhenJohngetstitlefromhisfather'sestateandrecordsit,theafteracquiredtitlegoes

automatically

to

Sam.


22/76

AfterAcquiredTitle

Example5

Considerthefollowing:0conveysBlackacre toA

by

warranty

deed

at

a

time

when

0

has

no

title.

Subsequenttotheconveyance,0acquirestitle.AlthoughtheTexascourtsgenerallyhaveheldthatAcanacquireO'safterrequiredtitleandis

notlimited

to

damages

in

asuit

for

breach

of

warranty,astudyofthecaseswilldemonstrateawidevariationbythecourtsintheirdefinitionandconsistencyofapplicationoftherationaleused

to

determine

the

rights

of

competing

parties

toanafteracquiredtitle:


23/76

AfterAcquiredTitle

Example5

1.Aisgiventitleonthebasisofacovenantof

warrantycontained

in

the

deed

(express

or

implied)topreventacircuitryofactiononthe

covenant(hereinafterreferredtoasthe

"warrantycases")

.


24/76

AfterAcquiredTitle

Example5

2.Aisgiventitleonthebasisthat0is

estoppedto

deny

the

title

he

purported

to

conveytoA(hereinafterreferredtoasthe

"estoppelcases").'


25/76

AfterAcquiredTitle

Example5

3.Aisgiventitleonthebasisofanestoppel

against0created

by

the

presence

of

a

covenantofwarranty(expressorimplied)

containedinthedeed(hereinafterreferredto

asthe

"warranty

estoppel"

cases)

."


26/76

AfterAcquiredTitle

Example5

4.Aisgiventitlewhereitisdifficult,ifnot

impossible,to

determine

the

underlying

theoryofthecase.

Unfortunately,thiscategoryincludesseveral

ofthe

most

extensively

cited

cases

in

this

field.SeeminglytheTexascourtshavefeltfreetoapplya"grabbag"rationale,i.e.,a

theoreticalbasis

suited

to

the

achievement

of

ajustresultinaparticularcase.'


27/76

AfterAcquiredTitle

Example5

However,thisvariationastothebasisof

decisionis

also

due,

in

part,

to

the

paucity

of

sourcelawavailabletothecourtsduringthe

Republicandearlyyearsofstatehood,and

misconceptionsconcerning

the

historical

basis

foracquisitionofafter acquiredtitleasit

existedinEnglandpriortothecolonizationof

theUnitedStates.


28/76

AfterAcquiredTitle

Example5

Considerforexampletheeffectofthe

followingrecital

which

might

be

contained

in

a

deedaspartofthedescriptionoftheland

conveyed:"totheplaceofbeginning,theland

hereinconveyed

being

all

of

the

interest

of

the

grantors,inandtosaidabovedescribedtract

oflandandwhichwasinheritedbythemfrom

theirmother,

and

also

from

their

father."


29/76

AfterAcquiredTitle

Example5

Atthetimeofconveyanceanundivided

interestin

the

property

is

owned

by

grantor's

brother,whichthereafterpassestograntors

bydescentanddistributionuponhisdeath.


30/76

CommonLaw

Source

for

Texas

ThedoctrineofafteracquiredtitleinTexasisa

doctrineestablished

in

common

law

and

evolved

intoitspresentformasaresultofnumerous

casesthathaveexpanded,limitedandclarified

thegeneral

rule.

Thedoctrinetouchesmanyareasoflaw,among

others,conveyances,recordingacts,mortgages

andother

real

property

liens,

adverse

possession,

realpropertyandoilandgas,amongothers.


31/76

CommonLaw

Source

for

Texas

Theafteracquiredtitledoctrinedealswitha

grantor

who

owns

a

lesser

interest

in

the

propertythanthegrantorpurportstoconveybyvirtueofawarrantyinadeedorotherconveyancedocumentandwhothereafteracquires

all

or

part

of

the

interest

he

intended

to

convey.

Thegeneralruleestopsthegrantorfromclaiming

ownershipof

the

after

acquired

interest

as

againsthisgrantee.


32/76

CommonLaw

Source

for

Texas

Undertherule,titletotheafteracquired

interestpasses

"eoinstante"

to

the

grantee

andthegrantee'sheirsandsuccessorsupon

thegrantor'sacquisitionofsuchinterest.


33/76

CurrentRule

for

Texas

TheTexasSupremeCourtclearlyarticulatedthecurrentruleinthewellknownDuhig v.PeavyMooreLumber

Co.

case:

"Itisthegeneralrule,supportedbymanyauthorities,thatadeedpurportingtoconveyafeesimpleoraless

definiteestate

in

land

and

containing

covenants

of

generalwarrantywillestopthegrantorfromassertinganafteracquiredtitleorinterestinland,ortheestatewhichthedeedpurportstoconvey,asagainstthegrantee

and

those

claiming

under

him."

Duhig,

135

Tex.503,144S.W.2d878,880(1940).


34/76

CurrentRule

for

Texas

Asasimpleexample,GrantorArepresentsin

hisdeed

to

Grantee

B

that

he

is

conveying

all

ofTractA;however,heonlyownsan

undividedseventyfivepercent(75%)interest

inthe

tract.

Grantee

B

conveys

the

property

to

GranteeC.GrantorAsubsequentlyacquires

theothertwentyfivepercent(25%)interest.


35/76

CurrentRule

for

Texas

AsagainstGranteeBandGranteeC,GrantorA

willbe

estopped

from

claiming

title

to

the

twentyfivepercent(25%)interest,becauseof

hisrepresentationsinhisdeedthathewas

conveyingall

of

the

tract.

Thetwentyfivepercent(25%)interestwill

vest

in

Grantee

C

immediately

upon

Grantor

A'sacquisitionofsuchinterest.


36/76

CurrentRule

for

Texas

Theeffectoftheruleisbindingnotonlyon

theoriginal

grantor

and

his

heirs

and

successors,but,afterrecording,italsobinds

subsequentpurchasersfromtheoriginal

grantorwho

acquired

the

interest

with

actual

orconstructivenoticeofthepriorconveyance.


37/76

TheDuhig Rule DoctrineofAfter

AcquiredTitle

WhathappensifaGrantorassumesthathe

owns100%

of

the

minerals,

then

sells

that

land,specificallygranting50%ofallthe

mineralsandspecificallyreserving50%ofall

theminerals

for

himself

(in

effect,

including

100%ofthemineralsintheconveyance),

and laterfindsthatheonlyowned50%ofthe

minerals?

The Duhig Rule Doctrine of After


38/76


Acquired

Title

The Duhig Rule shouldbeappliedinthis

instance.

TheDuhig Ruleisaruleofinterpretationthat

basicallygivesmoreweighttothegranted

intereststhan

the

interests

that

the

Grantor

attemptedtoreserve.



39/76


Acquired

Title

Thisrulewouldgenerallyonlycomeintoeffect

wherethere

was

awarranty,

special

warranty

orsimilarclauseincludedinthegrant,asthis

warrantywouldineffectmakeitsothe

Grantorwould

convey

all

they

own, or

ever

wouldown,intheproperty. Itwouldnot

applyinthecaseofaquitclaim

deed.

(Duhig v.Peavy

Moore

Lumber

Co.,

Inc.,135Tex.503,144S.W.2d878,880(1940))



40/76


Acquired

Title

Inthecaseabove,theGrantorwouldhave

conveyedhis

entire

50%

interest

into

the

propertywithnothinglefttohimselfto

reserve.IftheGrantor,intheinstancecited

above,had

conveyed

all

of

his

right,

title

and

interestintotheproperty,butreservedto

himselfaninterestintothemineralsinthe

amountof

50%,

then

he

would

have

effectivelyreservedallofhisminerals.



41/76


Acquired

Title

But,sincetheGrantorbothreserved50%to

himselfandgranted

50%

to

the

Grantee,

this

wouldhavebeenanoverconveyance,thereforetheDuhig Ruleshouldbeapplied.

IntheeventthattheGrantoronlyowned25%ofthemineralsatthetimeofthegrant,butlaterinheritedanadditional50%,thenthemomentthattheGrantorinheritsthe50%,anadditional

25%would

pass

directly

to

the

Grantee

to

satisfy

theprior50%grantintheconveyance.


42/76


AcquiredTitle

The DoctrineofAfterAcquiredTitle canbe

takenfurther

in

that

if

the

Grantee

under

the

originalconveyancegrantsallofhisinterest

inthetracttoathirdparty,andafterthat,the

50%inheritance

in

the

preceding

paragraph

weretooccur,thenthe25%wouldpassfrom

theoriginalGrantortothe third party,

bypassingthe

Grantee

under

the

original

conveyancealtogether.



43/76


Acquired

Title

Thedoctrineofafteracquiredtitleappliesonlyto

a

vendee

holding

by

a

warranty

deed.

This

is

the

reasoningbehindthedoctrine:

"Itiseasytoseewhyone,whosellswithwarranty,becomesestoppedfromthereafteracquiring

atitle

to

the

prejudice

of

his

grantee.

To

holdthatthetitleheacquiresinurestohisgranteeisreallynothingmorethanan

enforcementof

the

grantor's

obligation

to

deliver

agoodtitle.

h h l f f


44/76


AcquiredTitle

Ontheotherhand,itisquitemanifestthatthedoctrineofafteracquiredtitleshouldnotbeexpanded

to

include

aquit

claim

deed,

primarily

forthereasonthataconveyanceofthatcharactertransfersonlythepresentinterestof

the

vendor

in

the

land

and

does

not

convey

the

property. Thisbeingso,thereisnoreasonwhythevendor

shouldnotthereafteracquiretitleeventhoughit

beadverse

to

the

vendee

holding

under

the

deed."


45/76

What

Would

Texas

Do? InGermanyv.Turner,132Tex.491,123

S.W.2d874

(Tex.

Comm.

App.

1939),

the

survivingwifeandpurportedsoleheirsof

decedentgranted,sold,andconveyedallofa

certaintract

of

land

described

by

metes

and

bounds,bygeneralwarrantydeed.


46/76

What

Would

Texas

Do? Itwassubsequentlydiscoveredthatthedeed

boreforged

signatures

of

some

of

the

heirs.

Inasuitintrespasstotrytitleitwasheldthat

wheretherewasnolimitationorexceptionon

thegeneral

warranty

that

the

co

grantors

werejointandseverallyliableonthewarranty

totheextentofthewholeinterestconveyed.


47/76

What

Would

Texas

Do? Thecourtfurtherheldthattherecitationthat

grantorswere

the

surviving

wife

and

heirs

of

theformerownerwasamereindicationof

thesourceoftitleandnotalimitationupon

thegranting

clause

and

rejected

the

contentionofsurvivingwifethatshewasonly

conveyingherindividualinterestinthetract

described.


48/76

What

Would

Texas

Do? TheTexascasesstateasimpletestfromwhichto

determineif

after

acquired

title

will

pass:

Does

thedeed,lookingatitasawhole,conveythe

land,ormerelyindicateanintentiontoconvey

onlythe

presently

owned

interest,

or

property

acquiredfromaspecificsource.

Clausesconstruedasindicatingonlythesourceof

titlehave

been

interpreted

as

not

restricting

the

grantingclause.


49/76

Texas

Case

Law InGermanyv.Turner,132Tex.491,123S.W.2d874

(Tex.Comm.App.1939),thesurvivingwifeandpurported

sole

heirs

of

decedent

granted,

sold,

and

conveyedallofacertaintractoflanddescribedbymetesandbounds,bygeneralwarrantydeed.

It

was

subsequently

discovered

that

the

deed

bore

forgedsignaturesofsomeoftheheirs.Inasuitintrespasstotrytitleitwasheldthatwheretherewasnolimitationorexceptiononthegeneralwarrantythat

theco

grantors

were

joint

and

severally

liable

on

the

warrantytotheextentofthewholeinterestconveyed.


50/76

Texas

Case

Law Thecourtfurtherheldthattherecitationthat

grantorswere

the

surviving

wife

and

heirs

of

theformerownerwasamereindicationof

thesourceoftitleandnotalimitationupon

thegranting

clause

and

rejected

the

contentionofsurvivingwifethatshewasonly

conveyingherindividualinterestinthetract

described.


51/76

Texas

Case

Law Thecourtstated:Ifinthisinstancetherecitalsin

thepremisesbegiventheeffectoflimitingthe

estateconveyed

to

only

the

individual

undivided

interestofthegrantors,thenthepremisesareunquestionablyindirectconflictwiththe

granting,

habendum

and

warranty

clauses.

Thisconflictcanbeavoidedorresolvedbygivingtotherecitalsaconstructionthattheyaremerelydescriptio personae,orwereintendedtoreferto

thesource

or

history

of

title,

and

were

not

intendedtocreate


52/76

Texas

Case

Law InSpanglerv.Spangler,42S.W.2d826(Tex.

Civ.App.

1931),

achild

inherited

a1/24

interestincertainlandsuponhisfather's

death,butpriortothedeathofhismother

conveyedan

undivided

1/12

interest

by

a

deedcontainingthefollowingclause:"Itbeing

myintentiontoconveyallmyinterestinand

tosaid

tracts

of

land

by

reason

of

being

achild

andlegalheirofmyfather."


53/76

Texas

Case

Law Subsequenttothisdeedgrantor'smother

diedand

he

inherited

an

additional

1/24

interest.

Itwasheldthattheaboveclauselimitedthe

grantto

the

interest

inherited

from

the

father,

i.e.,a1/24interest,andthattheinterest

subsequentlyacquiredfromthemotherdid

notpasstothegrantee.


54/76

What

Would

Louisiana

Do? Applicationofafteracquiredtitledoctrine

77. Applicationofafteracquiredtitledoctrine

Ifapartypurportstoacquireamineralservitudefromalandownerwhentherightpurportedlyacquiredisoutstandinginanotherandthelandownereither

subsequentlyacquires

the

outstanding

right

or

is

the

ownerofthelandatthetimeitisextinguished,theafteracquiredtitledoctrineoperatestovesttherightinthepartywhopurportedtoacquireittothefullextent

of

his

title.

Acts1974,No.50,77,eff.Jan.1,1975.


55/76

What

Would

Louisiana

Do? 2006LouisianaLaws RS31:77STANDARD2.4A

AFTERACQUIREDPROPERTY

Ifawarrantydeedoranotherinstrumentcontainingcovenantsofwarrantysimilartoawarrantydeedisawildinstrumentandthegrantorofsuchwild

instrumentsubsequently

acquires

title

to

the

property

purportedtobeconveyedbythewildinstrument,thenthewildinstrumentshallbeeffectivetoconveythetitledescribedinthewildinstrumenttothegranteenamed

in

the

wild

instrument.


56/76

What

Would

Louisiana

Do? Underthisrule,thetitlewouldinuretothe

benefitof

the

parties

by

application

of

the

DoctrineofEstoppel preventingAfrom

denyingthatAownedtheinterestA

purportedto

convey

to

B.

This

doctrine

appliesregardlessofhoworwhenthe

subsequenttitleisacquiredbyA,and

regardlessof

whether

or

not

there

is

amere

ignoranceorfraudonAspart.


57/76

What

Would

Louisiana

Do? Forexample,assumeachainoftitlethatruns

fromAtoB,BtoC,CtoD,aninstrumentrecorded

during

Cs

possession

of

the

property

fromEtoZpurportingtoconveythelandownedofrecordbyCisawildinstrumentanddoesnot

renderCs

title

unmarketable.

If,however,afterthedateofthedeedfromEtoZ,DconveystoEthepropertydescribedinthe

deedof

Eto

Zthe

deed

from

Eto

Zis

effective

to

conveythepropertytoZ.


58/76

What

Would

Vermont

Do? ForVermontcasesrelatedtoafteracquiredtitle,

seeCrossv.Martin,46Vt,14(1873)andPresident

and

Fellows

of

Middlebury

College

v.

Cheney,1Vt.336(1828).

Thecasesonafteracquiredtitleholdaswellsettled

law

that

adeed

with

warranty

covenants

passesatitlelateracquiredbythegrantor,aslongasthegrantoracquiresthetitlebeforethe

partyholding

the

land

by

the

wild

deed

is

ousted

orremovedfromtheproperty.


59/76

What

Would

Vermont

Do? Thelegalprincipleonwhichthecasesarebased

is

the

absurdity

of

having

the

grantor

of

the

wild

instrumentrecoverthelandsfromthegrantee

afterthegrantoractuallyacquirestheproperty,

and

the

recovery

by

the

grantee

of

the

wild

instrumentofdamagesfromthegrantor.

Thevestingofthetitleinthegranteeofthe

formerlywild

instrument

is

in

discharge

of

the

covenantsofwarrantyinthewildinstrument.


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What

Would

Illinois

Do? Thedoctrineofafteracquiredtitleorestoppelbydeed

stemsfromthecommonlawruleofimplied

warranties.

AlthoughthecommonlawruleofimpliedwarrantiesisnotinexistenceinIllinoisunlessallofthewordsofthestatuteareused(Wheelerv.CountyofWayne,132Ill.

599,24

N.E.

625)

express

warranties

are

given

the

sameeffectasimpliedwarrantiesatcommonlaw.SeeBiwer v.Martin,294Ill.488,500,128N.E.518,inwhichthedoctrineofafteracquiredtitlewas

recognizedas

applicable

in

Illinois

where

an

express

warrantyismadebythegrantor.


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What

Would

Illinois

Do? Thecourtstated(294Ill.atpage496,128N.E.at

page522):

'Itislikewisetheruleinthisstatethatwhereonewhohasnointerest,orbutapartthereof,inthelandheundertakestoconvey,andafterwardsacquires

title,

the

interest

he

acquires

passes

to

thegranteebywayofestoppel,and,iftherebeawarranty,itnotonlyestopsthegrantorbuta

subsequentpurchaser

from

him. Frisby v.

Ballance,2Gilm.141;4Kent'sCom.


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What

Would

Missouri

Do? MissouriRevisedStatutes

Titleacquiredbygrantorafterconveyanceinuresto

grantee.442.430.

Where

agrantor,

by

the

terms

of

his

deed,undertakestoconveytothegranteeanindefeasibleestateinfeesimpleabsolute,andshallnot,atthetimeofsuchconveyance,havethelegaltitle

tothe

estate

sought

to

be

conveyed,

but

shall

afterwardacquireit,thelegalestatesubsequentlyacquiredbyhimshallimmediatelypasstothegrantee;andsuchconveyanceshallbeaseffectiveasthough

suchlegal

estate

had

been

in

the

grantor

at

the

time

of

theconveyance.


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What

Would

Missouri

Do? (RSMo 1939 3497)Priorrevisions:1929 3107;

1919 2266;1909 2871

(1959)When

person

executes

two

or

more

mortgagesordeedsoftrustonthesameland,aforeclosureoftheseniormortgagewillonly

temporarily

extinguish

or

cut

out

a

junior

mortgage,ifthemortgagorsubsequentlyacquirestitletotheland,andthejuniormortgagewillberevivedandreinstatedagainst

theland.

Sabine

v.

Leonard

(Mo.),

322

S.W.2d

831.


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What

Would

Montana

Do? MontanaCode Annotated2011

7020

302.

After

acquired

title

to

pass

by

operationoflaw.Whenapersonpurportsby

properinstrumenttograntrealpropertyinfee

simpleand

subsequently

acquires

any

title

or

claimoftitletotherealproperty,thereal

propertypassesbyoperationoflawtothe

granteeor

the

grantee's

successors.

What Would South Dakota Do?


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What WouldSouthDakotaDo?

SouthDakotaCodifiedLaws

704.

Quit

claim

after

acquired

title.

A

quit

claimdeeddoesnotpassafteracquired

interestinproperty,unlesswordsexpressing

suchintent

are

added.


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What

Would

South

Dakota

Do? SouthDakotaDefinitionofAfterAcquired

Title Alegaldoctrineunderwhich,ifagrantor

conveyswhatismistakenlybelievedtobe

goodtitle

to

land

that

he

or

she

did

not

own,

andthegrantorlateracquiresthattitle,it

vestsautomaticallyinthegrantee.


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What

About

Quitclaim

Deeds? Generally,however,aquitclaimdeedconveys

onlythe

grantor's

interest

or

title,

if

any,

in

property,ratherthanthepropertyitself.See

Bilby v.Wire,77N.W.2d882,888(N.D.1956);

Frandson v.Casey,73

N.W.2d

436,

437

(N.D.

1955)).

What About Quitclaim Deeds?


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WhatAboutQuitclaimDeeds?

"Ifadeedpurportsandisintendedtoconvey

onlythe

right,

title,

and

interest

in

the

land,

as

distinguishedfromthelanditself,itisa

quitclaimdeed;ifitappearsthattheintention

wasto

convey

the

land

itself,

then

it

is

not

a

quitclaimdeed,althoughitmaypossess

characteristicspeculiartosuchdeeds."23Am.

Jur.2d Deeds

223

(2002).



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InSchumanv.McLain,61P.2d226,22728(Okla.

1936),

the

court

explained: Atcommonlawaquitclaimdeeddidnotriseto

thedignityofaconveyance,butwasmerelya

release.Under

American

jurisprudence,

whether

pursuanttostatutoryenactmentornot,quitclaim

deedshavebecomegenerallyrecognizedas

instrumentsof

conveyance,

but

conveying

only

suchinterestasthegrantormayhave,ifany.


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"'Theuseofaquitclaimdeedcanberegardedasnoticetothepurchaserthattheremaybe

outstandingequities

against

the

grantor's

title.'

GeneralIn.Corp.,atparagraph12(quoting14PowellonRealProperty 81A.03(1)(c)(2000)).[11]InBibly,77N.W.2dat888,thisCourt

also

explained:

After

acquired

title

by

the

grantorwillnot,asageneralrule,inuretothebenefitofthegranteeunderaquitclaimdeed.26

C.J.S.,

Deeds,

118,

p.

416;

State

v.

Kemmerer,

14S.D.169,84N.W.2d771,773.



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Inthatcasethecourtsaid:

"It

[referring

to

the

quitclaim

deed]

does

not

purporttoconveytheproperty,butonlythegrantor'sright,title,andinteresttherein.Such

a

deed,

therefore,

does

not

have

annexed

to

it,underthestatute,impliedcovenants,andanafteracquiredtitledoesnotpassbyoperationoflawtothegranteeorhissuccessors."



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Inalonglineofdecisionsithasbeenheldthataquitclaimdeedofalltheright,titleandinterest

of

the

grantor,

purports

to

convey,

anddoesconvey,nomorethanthepresentinterestofthegrantor,anddoesnotoperateto

pass

an

interest

after

acquired.

Thegrantorundersuchdeedwillnotbeestoppedfromassertinganafteracquiredtitle.

44

A.L.R.

1276;

162

A.L.R.

556,

566

What About Leases?


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WhatAboutLeases?

Thecommonlawdoctrineofafteracquiredtitle

or

estoppel

by

deed

applies

to

leases.

In Poultney

v.Emerson,117Md.655,658,84A.53,54,it

wassaidinthisconnection:

12'It

is

awell

recognized

rule

that

if

alease

is

madebyonewhohasnopresentinterestinthe

demisedproperty,butacquiresaninterestduring

theterm,

the

lease

will

operate

upon

his

estate

asifvestedatthetimeofitsexecution.

What About Leases?


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WhatAboutLeases?

InSummersOil&Gas,Vol.3,Sec.552,p.577(1958Ed.)itisstated:

15'The

principle

that

the

after

acquired

title

passestothegranteewheregrantorwarrantsthetitleorrepresentsthatheconveystheland,

operates

in

assignment

of

oil

and

gas

leases

as

in

otherconveyances.'

16Weseenoreasonwhyanoilandgasleaseinwhichthelessorwarrantstitleshouldbe

excludedfrom

the

scope

of

the

doctrine

of

after

acquiredtitle.

CONCLUSION


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CONCLUSION

THANKS!

the doctrine of after acquired title -fitzgerald

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