Utley v. Smith

VAN DYKE, P. J.

This is an appeal from a judgment decreeing specific performance of a contract resulting from the exercise of an option to buy real estate.

On September 30, 1952, Jewell H. Smith was the owner of a certain parcel of real property in Sacramento County. On that day he executed a written document entitled “Agreement of Sale,” which acknowledged that he had received from Lewis and Desch, defendants and appellants here, the sum of $200 as the deposit upon the purchase price of his property. It was stated that the purchase price was $3,500 and that it was payable in cash upon the delivery of title. This document he signed and over the signatures of Lewis and Desch there was written the word “Accepted.” No question is raised, and we think none could be raised, but that this document constituted an agreement of purchase and sale which, except as against interests prior in right, at once worked an equitable conversion of the title so that thereafter Lewis and Desch were the equitable owners and Smith retained the legal title pending the consummation of the agreement.

(Estate of Reid,

26 Cal.App.2d 362, 367 [79 P.2d 451] ;

Estate of Dwyer,

159 Cal. 664, 675 [115 P. 235].) Upon the same day Smith executed a document entitled “Option for Sale of Real Estate,” which recited that in consideration of $10 Smith had received he was giving to Utley, plaintiff and respondent herein, the right and option to purchase from Smith on or before the 20th day of October, 1952 the same property above referred to. The purchase price was fixed at $3,500. The document provided that if respondent elected to purchase he would pay Smith $3,490 or might deposit that sum for Smith at the office of a named title company. On October 7, 1952, respondent recorded the option contract. Within the time given, that is, on October 10,1952, respondent notified Smith in writing of his election to buy the property and deposited the full balance of the purchase price with the title company. He demanded that the property be conveyed to him. Appellants Lewis and Desch proceeded

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under their contract of sale of September 30th and received a deed from Smith on October 14th. Smith refused to convey to respondent Utley and respondent began an action to compel specific performance, asking this relief against Smith and also against appellants Lewis and Deseh. The trial court granted respondent’s prayer for relief and ordered Lewis and Desch to convey the property to him. From that decision this appeal was taken.