How does a court treat a voidable deed?

😀 Real Property • Conveyances PROP#175

Legal Definition

A voidable deed is only set aside if the property has not passed to a .

Plain English Explanation

A "voidable deed" means the deed has the potential to become void, but is effective until that happens. Some examples include: (1) deeds that are acquired through fraud, mistake, duress, undue influence, and breach of fiduciary duty; (2) deeds executed by people with mental disabilities (or who otherwise lack capacity); (3) deeds that are executed by people who have not yet reached the age of majority.

Note that these deeds cannot be voided and set aside once they are sold to someone who is unaware of the voidable circumstance and purchases the property (a "bona fide purchaser").

Hypothetical

Hypo 1: Bob conveys Blackacre to his 12 year old son, Timmy. Timmy decides he wants some extra money to buy video games, so he sells Blackacre to Amy for $1,000. Amy thinks its weird to be buying land from a 12 year old, but she likes the property. Timmy executes a deed that conveys Blackacre to Amy. Bob realizes what has happened, so he yells at Timmy who then realizes the mistake. Result: Amy received a deed from a minor, which made it a voidable deed. She was aware that Timmy lacked capacity, so she is not a bona fide purchaser, and thus gets no protection.

Hypo 2: Same facts as Hypo 1, except Amy sells Blackacre to Dan before Bob and Timmy demand Blackacre back. Result: Here, Dan is a bona fide purchaser. As such, even though the deed was voidable, he is protected from having his deed set aside by the courts.

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