Beran v. Harris

California Court of Appeal Apr 29, 1949 No. Civ. 3766Published

Before: Mussell

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Holding. The court held that the deed superseded the prior option agreement, and that the language in the deed restricting the property's use did not create a valid condition subsequent or enforceable restriction.

Issues

Whether the option agreement's setback restrictions survived the execution of the grant deed.
Whether the deed's provision regarding property use created an enforceable condition subsequent.

Disposition. affirmed

Quotations verified verbatim against the opinion

“In the instant case, by the execution and delivery of the deed conveying the property, the option agreement became a nullity and the deed became the measure of the rights of the parties.”

“In the deed before us, no appropriate words are used to show an intention to create a condition subsequent.”

MUSSELL, J.

This action was brought to compel defendants to reconvey to plaintiffs a certain lot in the county of Fresno, or in the alternative, for a permanent injunction restraining defendants from using the property for any purpose except a service station and residence.

On January 1,1947, an option was given by plaintiff Sidney S. Beran to defendant Doyle A. Harris for the purchase of the property which is the subject of this action. The option contained, among other things, the following provisions:

“Building Setbacks: Permanent residence must be set back sixty (60) feet from center of road right of way, and must contain at least six hundred (600) square feet of floor space. Temporary residences must be set back one hundred (100) feet from center of road right of way. Tents or house trailers are not to be used for purpose of living quarters. Property to be used for residential & service station only.” It also contained the further provision that “If restrictions or reservations are violated within twenty-five (25) years from date, property reverts to seller.”

On February 14, 1947, plaintiffs executed and delivered to defendants a grant deed in the usual form, conveying the property in question without restrictions with respect to any building setbacks. The only named restriction set forth in the deed was that for 50 years'the property could not be used or occupied by any other than the white race. After a recital

[564]

therein that the property was subject to certain taxes, the following sentence appears: “Property to be used for residence and service station purposes only.”

It was admitted by the defendants that they used the premises purchased by them, not only as a residence but also for the sale of automobile parts, prepared food, beer, soda water, milk and bread, and for the repair and lubrication of automobiles.

The Option Agreement

An option has been defined as an agreement by which an owner invests another with the exclusive right to buy certain property at a stipulated price, within a limited time

(Tufts

Beran v. Harris

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MUSSELL, J.

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