Real Property: The Recording System: Chain of Title Problems: Estoppel By Deed

Estoppel By Deedone who conveys realty in which he has no interest is estopped from denying the validity of that conveyance if he later acquires the interest which he previously transferred.
  • EX: In 1950, O owns Blackacre. He is thinking about selling it to X, but for now decides against it. In 1950, X, who does not own Blackacre, sells it anyway, to A. A records.

In 1960, O finally sells Blackacre to X. X records in 1960.

In 1970, X, a double dealer, sells Blackacre to B. B records.

      • As between X and A, who owned Blackacre from 1960-1969? A did because of the rule of estoppel by deed: one who conveys realty in which he has no interest is estopped from denying the validity of that conveyance if he later acquires the interest which he previously transferred
      • Who owns Blackacre in 1970? B as long as he is a BFP.
        • B wins in a notice system because he is a BFP. B wins in a race-notice system because he is a BFP who wins the race to record. A’s 1950 recording is a nullity. A recorded too early. B’s title searcher would not find A’s deed because one is entitled to assume that no one sells land until they own it first. Thus, B’s title searcher would not discover X’s 1950 pre-ownership transfers to A.