Escrow & Title
Nebraska's doctrine of after-acquired title means that if a grantor conveys property they don't yet own but later acquires it:
AThe deed is permanently void
BTitle automatically passes to the grantee upon the grantor acquiring ownership✓ Correct
CThe grantee must sue to enforce their claim
DThe title reverts to the original grantor's heirs
Explanation
After-acquired title (estoppel by deed) means that if a grantor warrants title but doesn't own the property at the time of conveyance, when they later acquire it, that title immediately and automatically passes to the grantee.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
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