Reynolds v. Borel
Synopsis
Vendor and Purchaser — Conditional Contract of Sale — Return os Deposit — Imperfect Abstract of Title — Refusal of Purchaser to Make Title Good. — Where a contract for the sale of land was conditioned that if the title was found imperfect, and could not be made good, the deposit made by the purchaser would be returned, and certain imperfections were found in the abstract of title, which there was a reasonable probability might give rise to litigation, and which made the title subject to grave doubts, and which the vendor refused to remedy or remove or warrant the purchaser against, an action will lie in favor of the purchaser to recover the amount of the deposit made by him.
Id. — What Constitutes a Good Title. — A title to be good should be free from litigation, palpable defects, and grave doubts, should consist of both legal and equitable titles, and should be fairly deducible of record.
Id. — Imperfect Title. — A title is not good, within the meaning of the foregoing rule, when the records show that a previous deed purporting to convey an interest in the land had been made to a person with whom the vendor does not connect himself, or when circumstances exist which render it possible for creditors of a prior owner of the land to attack a conveyance under which the vendor holds.
Per Curiam. This action was brought to recover a deposit of money made by the plaintiff, Reynolds, to bind his purchase of land from the defendant, Borel. A part of the contract was, that the plaintiff—the purchaser — should be allowed twenty days from the date of the contract within which to search the title to the property, and if the title was found to be “ imperfect, and cannot be made good, said deposit will be returned.”
The plaintiff submitted a proper abstract of title to [539]the land to his attorney, who, within the specified time, pronounced the title imperfect, and objected to it on these grounds: —
“ On the fourth day of June, 1880, Eugene Casserly was the owner of the block of land including said land, and on said day conveyed the same to one R. Emmett Doyle in trust for the separate use and benefit of his wife, Theresa Casserly, in consideration of the love and affection he, Casserly, bore to his said wife, and to be conveyed to her in fee-simple as her separate property, by said trustee, whenever thereunto requested by her; and on the fifth day of June, 1880, the said R. Emmett Doyle did convey said block of real property to the said Theresa Casserly by grant, bargain, and sale deed, consideration one dollar; and the title thus conveyed remained in said Theresa Casserly from thence until the twenty-first day of November, 1884, when she conveyed the same to Antoine Borel; but the deeds to Doyle, and from Doyle to Theresa Casserly, aforesaid, were not recorded until January 13, 1884.
“ That on the sixth day of February, 1866, John Treat, who claimed to have some interest in said real property, conveyed the same to John Center, who still holds the interest thus conveyed to him.
“ That at the time of the conveyances to Doyle and Casserly, aforesaid, to wit, on the fourth and fifth days of June, 1880, said Eugene Casserly was subject to the following debts, claims, judgments, and liabilities: The claim and demand of J. F. Eagan for $15,225, and the claim and demand of Charles Mayne for $1,713.85. And upon these claims and demands actions were brought, judgments obtained, and appeals therefrom taken, without stay bonds or stay of proceedings, effected as follows, viz.:—
“In the fifteenth district court, San Francisco, Eugene Casserly, plaintiff, v. McNevin et al., defendants. No, 10227. Action commenced September 28, 1877; judg[540]
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