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Real Property • Conveyances
PROP#191
Legal Definition
If a grantor tries to convey an estate in property that they do not actually own at the time of conveyance, but later do acquire, it automatically goes to the grantee (but not for quitclaim deeds). However, where the grantee is a subsequent bona fide purchaser, they prevail.
Plain English Explanation
"Estoppel" generally means the court will force someone to do what they said they were going to do. This is difficult when it comes to property. Imagine if Amy conveyed Whiteacre to Bob, but it turned out Whiteacre was actually owned by Carl. The court's don't have the ability to force Amy to convey Whiteacre because Amy has no power over Whiteacre. However, if Amy ever does get ownership of Whiteacre, the courts will usually automatically transfer it to Bob. There's one exception to look out for: the bona fide purchaser.
Bona fide purchasers are innocent parties who buy things without realizing all the drama going on behind the scenes. In this example, imagine if Amy got ownership of Whiteacre but before the courts could give it to Bob, Amy sold it to Dan. Dan is a bona fide purchaser and the courts don't think it is fair to take Whiteacre from Dan after he bought it without knowing it was actually supposed to go to Bob. Bob's only option at this point is to sue Amy for damages.
Bona fide purchasers are innocent parties who buy things without realizing all the drama going on behind the scenes. In this example, imagine if Amy got ownership of Whiteacre but before the courts could give it to Bob, Amy sold it to Dan. Dan is a bona fide purchaser and the courts don't think it is fair to take Whiteacre from Dan after he bought it without knowing it was actually supposed to go to Bob. Bob's only option at this point is to sue Amy for damages.
Related Concepts
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Under a race-notice recording statute, when does a subsequent Bona Fide Purchaser prevail?
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