Acquisition and Transfer of Title (Sale, Gift, Inheritance)
What the exam tests
This domain tests how title passes by sale, gift and inheritance, the formalities for each, and priority between competing acquirers. Expect questions on contracts, deeds, registration, donative intent and intestacy.
Core rules
- A contract for sale creates equitable rights; a conveyance or deed transfers the legal estate. The contract must satisfy writing or formality rules and be completed by conveyance and registration.
- A gift of land requires intention to give, delivery of possession or a deed, and, for a legal gift, the required conveyance. Equity may perfect an imperfect gift only in limited circumstances, such as a completed transfer or a donative declaration of trust.
- Inheritance may be testate (will) or intestate (statute or custom). A will must be validly executed; intestacy follows the statutory order or applicable customary law.
- Nemo dat quod non habet: a transferor cannot give better title than they have. Exceptions include a bona fide purchaser for value without notice, statutory overreaching, and market overt where still applicable.
- Priority between purchasers usually depends on registration and notice.
Worked example
A signs a written contract to sell land to B but before conveyance sells and conveys to C, who registers without notice of B. B has an equitable interest under the contract. If the registry is a title registration system and C is a bona fide purchaser without notice, C’s registered title may prevail; B’s remedy is against A. If C had notice, B could assert priority.
Traps
Confusing contract with conveyance; assuming an oral gift passes legal title; overlooking registration; ignoring notice in priority disputes.