The Doctrine of After Acquired Title -Fitzgerald
Transcript of 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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
3/76
AfterAcquiredTitle:Overview
AfteracquiredtitleapplieswhenJoe,whohas
notinterest
in
the
land,
conveys
title
to
the
landtoMaryandthensubsequentlyacquires
titletothelandfromFred,whooriginallyheld
legaltitle
to
the
land.
At
the
time
Joe
acquires
title,suchtitleautomaticallypassestoMary.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
4/76
AfterAcquired
Title:
Overview
Thisdoctrinehasbeencodifiedintoa
statutoryprovision
in
some
states
but
originallyitwasanequitabledoctrineto
preventunjustenrichment.
Asageneralprinciple,warrantydeedsand
grantdeedsaredeemedtotransferafter
acquiredtitle,
but
quitclaim deeds
do
not.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
5/76
AfterAcquiredTitle:Overview
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
6/76
AfterAcquiredTitle:Overview
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
9/76
ImpliedCovenants
Althoughtheseimpliedcovenantsariseby
operationof
law
when
the
words
"grant"
or
"convey"areusedintheconveyance,the
grantornonethelessmaynegateorrestrain
thecovenants
by
express
terms
contained
in
theconveyance.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
10/76
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
11/76
AfterAcquiredTitle
Definition
Doctrinebywhichthetitleofrealestate,
previouslyunsuccessfully
transferred
because
oflackofpossessionbygrantor,automatically
passestothebuyeruponacquisitionbythe
grantorand
is
based
on
the
acquisition
of
title
byestoppel.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
13/76
AfterAcquiredTitle
Definition
Thesocalled"doctrineofafteracquiredtitle"
dealswith
the
rights
of
agrantee
(and
his
successors)whoacceptsadeedorother
conveyancefromagrantorthenwithouttitle,
butwho
thereafter
acquires
it.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
14/76
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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:
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
23/76
AfterAcquiredTitle
Example5
1.Aisgiventitleonthebasisofacovenantof
warrantycontained
in
the
deed
(express
or
implied)topreventacircuitryofactiononthe
covenant(hereinafterreferredtoasthe
"warrantycases")
.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
24/76
AfterAcquiredTitle
Example5
2.Aisgiventitleonthebasisthat0is
estoppedto
deny
the
title
he
purported
to
conveytoA(hereinafterreferredtoasthe
"estoppelcases").'
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
25/76
AfterAcquiredTitle
Example5
3.Aisgiventitleonthebasisofanestoppel
against0created
by
the
presence
of
a
covenantofwarranty(expressorimplied)
containedinthedeed(hereinafterreferredto
asthe
"warranty
estoppel"
cases)
."
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.'
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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."
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
29/76
AfterAcquiredTitle
Example5
Atthetimeofconveyanceanundivided
interestin
the
property
is
owned
by
grantor's
brother,whichthereafterpassestograntors
bydescentanddistributionuponhisdeath.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
32/76
CommonLaw
Source
for
Texas
Undertherule,titletotheafteracquired
interestpasses
"eoinstante"
to
the
grantee
andthegrantee'sheirsandsuccessorsupon
thegrantor'sacquisitionofsuchinterest.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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).
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
36/76
CurrentRule
for
Texas
Theeffectoftheruleisbindingnotonlyon
theoriginal
grantor
and
his
heirs
and
successors,but,afterrecording,italsobinds
subsequentpurchasersfromtheoriginal
grantorwho
acquired
the
interest
with
actual
orconstructivenoticeofthepriorconveyance.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
38/76
TheDuhig Rule DoctrineofAfter
Acquired
Title
The Duhig Rule shouldbeappliedinthis
instance.
TheDuhig Ruleisaruleofinterpretationthat
basicallygivesmoreweighttothegranted
intereststhan
the
interests
that
the
Grantor
attemptedtoreserve.
The Duhig Rule Doctrine of After
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
39/76
TheDuhig Rule DoctrineofAfter
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))
The Duhig Rule Doctrine of After
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
40/76
TheDuhig Rule DoctrineofAfter
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.
The Duhig Rule Doctrine of After
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
41/76
TheDuhig Rule DoctrineofAfter
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
42/76
TheDuhig Rule DoctrineofAfter
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.
The Duhig Rule Doctrine of After
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
43/76
TheDuhig Rule DoctrineofAfter
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
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
44/76
TheDuhig Rule DoctrineofAfter
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."
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
46/76
What
Would
Texas
Do? Itwassubsequentlydiscoveredthatthedeed
boreforged
signatures
of
some
of
the
heirs.
Inasuitintrespasstotrytitleitwasheldthat
wheretherewasnolimitationorexceptionon
thegeneral
warranty
that
the
co
grantors
werejointandseverallyliableonthewarranty
totheextentofthewholeinterestconveyed.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
47/76
What
Would
Texas
Do? Thecourtfurtherheldthattherecitationthat
grantorswere
the
surviving
wife
and
heirs
of
theformerownerwasamereindicationof
thesourceoftitleandnotalimitationupon
thegranting
clause
and
rejected
the
contentionofsurvivingwifethatshewasonly
conveyingherindividualinterestinthetract
described.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
50/76
Texas
Case
Law Thecourtfurtherheldthattherecitationthat
grantorswere
the
surviving
wife
and
heirs
of
theformerownerwasamereindicationof
thesourceoftitleandnotalimitationupon
thegranting
clause
and
rejected
the
contentionofsurvivingwifethatshewasonly
conveyingherindividualinterestinthetract
described.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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."
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
55/76
What
Would
Louisiana
Do? 2006LouisianaLaws RS31:77STANDARD2.4A
AFTERACQUIREDPROPERTY
Ifawarrantydeedoranotherinstrumentcontainingcovenantsofwarrantysimilartoawarrantydeedisawildinstrumentandthegrantorofsuchwild
instrumentsubsequently
acquires
title
to
the
property
purportedtobeconveyedbythewildinstrument,thenthewildinstrumentshallbeeffectivetoconveythetitledescribedinthewildinstrumenttothegranteenamed
in
the
wild
instrument.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
60/76
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
61/76
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
62/76
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
63/76
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
64/76
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?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
65/76
What WouldSouthDakotaDo?
SouthDakotaCodifiedLaws
704.
Quit
claim
after
acquired
title.
A
quit
claimdeeddoesnotpassafteracquired
interestinproperty,unlesswordsexpressing
suchintent
are
added.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
66/76
What
Would
South
Dakota
Do? SouthDakotaDefinitionofAfterAcquired
Title Alegaldoctrineunderwhich,ifagrantor
conveyswhatismistakenlybelievedtobe
goodtitle
to
land
that
he
or
she
did
not
own,
andthegrantorlateracquiresthattitle,it
vestsautomaticallyinthegrantee.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
67/76
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?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
68/76
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).
What About Quitclaim Deeds?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
69/76
WhatAboutQuitclaimDeeds?
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.
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
70/76
What About Quitclaim Deeds?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
71/76
WhatAboutQuitclaimDeeds?
"'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.
What About Quitclaim Deeds?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
72/76
WhatAboutQuitclaimDeeds?
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."
What About Quitclaim Deeds?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
73/76
WhatAboutQuitclaimDeeds?
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?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
74/76
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?
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
75/76
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
-
7/27/2019 The Doctrine of After Acquired Title -Fitzgerald
76/76
CONCLUSION
THANKS!