Estoppel by deed
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Property law |
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Estoppel by Deed - Under this equitable doctrine, the courts say that the grantor gave an implied covenant that title will be conveyed to the grantee. Therefore, that grantee can sue to compel the transfer of title from the grantor. However, a subsequent sale to a Bona fide purchaser will cut off the rights of an earlier grantee and, as such, will cut off that grantee's right to rely on the Estoppel by Deed Doctrine
Examples:
If O conveys property she doesn't own to A by warranty deed, but O later acquires title to that land, then title immediately passes to A.
If O conveys property she doesn't own to A by quitclaim deed, but O later acquires title to that land, then A owns nothing. This is because O passed her interest to A with a quitclaim deed. At the time of the conveyance, her interest was nothing, so she passed nothing.
Estoppel by deed can also apply to other areas of contract law. An estoppel by deed is some sort of representation in the recitals to an agreement. Once the agreement is made, one party may claim that the other party cannot enforce certain rights under the agreement due to representations made in the recitals.
Estoppel by deed is also a bar which precludes a party to a deed from asserting as against the other party any right or title in derogation of the instrument or from denying the truth of any material fact asserted in it. In Re Estate of Goldstein, 293 Ill.App.3d 700, 688 N.E.2d 684.