Novak v. Novak

[440]

FOURT, J.

Charles and Marie Novak appeal the judgment rendered by the court without a jury quieting title to certain real property in favor of respondent Charles B. Novak.

The facts, which are not in dispute, disclose that appellants, Charles and Marie, are the son and daughter-in-law, respectively, of Charles B. Novak, age 86, who will be referred to hereinafter as “the father.” Prior to the subject transaction the father lived with Charles and Marie. On December 27, 1951, the father entered a contract to purchase for $6,500 a residence in Pacoima from one Barrett, then owner, on a land sale contract. He paid down approximately $1,000, moved in, and continued to make payments to Barrett until on March 2, 1952, he received notice from a bank in Van Nuys that Barrett was in default and that the bank had moved to foreclose the property.

The father, because of his age, was unable to refinance and prevent the foreclosure, so he turned to Charles and Marie. There was little time; they had in fact only one week within which to finance the property to prevent foreclosure. Charles agreed to and did obtain a loan. He and Marie purchased the property for $5,500 from Metropolitan Savings and Loan. The father executed a quitclaim deed to the property to Charles and Marie to enable them to complete the financing. This constituted, as to Charles and Marie, a purchase money mortgage, and did not render them personally liable for repayment, although Charles testified that it was his belief that it did.

Charles testified further that he and Marie believed that they owned the property. He and his father agreed that at the time the loan was arranged and the quitclaim deed given they had no conversation about the ownership of the property. The father had requested that Charles “vouch” for him to obtain a loan, and he retained faith and confidence in his son, assuming that upon full loan repayment his son would reconvey the title to him. Charles testified that he told his father that the house now belonged to Charles and Marie, but his father could reside there as long as he lived and if at any time he was unable to make payments, they would do so. The father, who understood that Charles and Marie would be obligated to make payments if he failed to do so, nonetheless clung to his belief that they held title for convenience only and to facilitate the financing for his benefit.