VICTOR VAZEMILLER v. KENNETH SANDERS
A21A1151
| Ga. Ct. App. | Jul 23, 2021Background
- In 2010 Deborah Lamb deeded Tract A to Kristi and Kenneth Sanders and Tract B to Timothy Evans; neither deed was immediately recorded.
- The Sanders allegedly told family they lost the deed and did not want Tract A; Evans paid taxes and Lamb quitclaimed both tracts to Evans in January 2015 (recorded Feb. 2015).
- Kenneth recorded the 2010 Sanders deed in April 2015 after objecting to Evans’s attempt to sell; Evans later contracted to sell both tracts to the Vazemillers in Feb. 2016.
- The March 2016 closing with O’Kelley & Sorohan initially omitted Tract A; a corrected limited warranty deed transferring both tracts to the Vazemillers was executed Aug. 5, 2016 and recorded Aug. 10, 2016.
- O’Kelley & Sorohan discovered the Sanders deed during a title search, but the firm and the Vazemillers executed a signed closing acknowledgment that the firm was a transaction agent and did not represent buyer or seller.
- Kenneth sued to cancel the corrected deed and for damages; the trial court granted Kenneth partial summary judgment finding the Vazemillers had notice (via the closing attorney) and denied the Vazemillers’ cross-motion. The Court of Appeals reversed in part, vacated the denial of the Vazemillers’ motion, and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Vazemillers were bona fide purchasers protected from the Sanders deed | Sanders: O’Kelley & Sorohan discovered the Sanders deed during the title search, and that knowledge inured to the Vazemillers, so they had notice | Vazemillers: No attorney-client or principal-agent relationship with closing counsel; recorded Sanders deed was outside their chain of title so they lacked constructive notice | Reversed trial court’s finding of notice; evidence did not establish representation as a matter of law, so Vazemillers’ BFP status not defeated on that basis |
| Whether a recorded deed outside a purchaser’s chain of title gives constructive notice | Sanders: discovery of deed by closing counsel gave purchasers notice | Vazemillers: A recorded instrument gives constructive notice only if it is in the purchaser’s chain of title | Court accepted that a recorded deed outside the chain does not give constructive notice; but main reversal centered on lack of notice via attorney-client link |
| Whether the trial court properly denied the Vazemillers’ summary-judgment counterclaims (quiet title) and failed to cancel the Sanders deed | Vazemillers: entitled to summary judgment as bona fide purchasers for value | Sanders: argued ownership via 2010 deed and other grounds to defeat BFP claim | Court vacated the denial of Vazemillers’ motion and remanded for the trial court to consider their arguments and any other unresolved summary-judgment contentions |
Key Cases Cited
- Montgomery v. Barrow, 286 Ga. 896 (defines bona fide purchaser protection and presumption of good faith)
- Real Estate Operators v. McMahon, 171 Ga. 454 (recorded deed gives constructive notice only if it is a link in the purchaser’s chain of title)
- Mathis v. Blanks, 212 Ga. 226 (notice to an attorney is notice to the client when within the subject matter of the attorney’s employment)
- Richard v. David, 212 Ga. App. 661 (closing attorney does not necessarily represent the purchaser)
- Cleveland Campers v. R. Thad McCormack, P. C., 280 Ga. App. 900 (attorney-client relationship may be implied only when the would-be client reasonably believes representation was provided, induced by attorney’s conduct)
