What is the effect of the shelter rule in property law?

The shelter rule in property law allows a subsequent transferee to claim the rights of a prior transferor. This means that if a person acquires property from someone who has valid title, that person receives protection under the shelter rule, enabling them to assert the same rights that the original transferor had, even if the transferor's title is flawed or has been lost. Essentially, the transferee "shelters" under the rights of the transferor.

This principle serves to protect innocent purchasers of real property by ensuring that their title remains secure, even if the previous owner had some defect or issue with their title. The shelter rule encourages marketability and security in property transactions, as it allows individuals to rely on the titles they receive without the constant fear of losing them due to defects that might affect a previous owner.

The discussion around the incorrect options provides context for understanding why the correct answer aligns with established principles. For instance, the idea that a transferee cannot claim any interest is contrary to the essence of the shelter rule, which affirms the transferee's ability to assert rights. Similarly, asserting that a transferee’s interests are always prior misinterprets the nature of the rule, as the shelter rule does not automatically prioritize interests but instead