Correct, you cannot assume legal title. BUT if any person acquires property honestly and with a belief that the seller had the right to sell it then the person acquiring it MAY have a claim to title. The only way it can be sorted out is in the court. Example - car is stolen by A from B. A sells it to C who buys it in good faith with documentation and has no reason to believe it has been stolen. It cannot be automatically taken from C and returned to B because C can claim legal title. (Although this frequently happens). The final outcome can only be determined by a court. Advice - if you ever get the police come round and tell you you have bought stolen property and they demand that you give it up - tell them to go away (politely). Provided you have bought the property honestly and in good faith you may hang onto it until a court decides who is the rightful owner. Of course if you do this you cannot sell or dispose of it or you may be guilty of handling stolen property.