OPINION
Appellant Amethyst Land Co., Inc. (Amethyst) and Appellees James F. Terhune and Elizabeth R. Terhune (the Terhunes) are adjoining property owners in Santa Fe County, New Mexico. For several years, access to the property now owned by Amethyst was provided by a 40-foot, non-exclusive roadway and utility easement located on the land now owned by the Terhunes. In 2001, when the Terhunes purchased their property, a predecessor in interest to Amethyst and the Terhunes signed an Extinguishment Agreement to terminate this easement. However, before the Extinguishment Agreement was recorded in the county clerk’s office, the predecessor sold its property to Desert Sunrise, LLC (Desert Sunrise), who was unaware of the Extinguishment Agreement and who later sold the property to Amethyst.
In 2006, Amethyst filed suit against the Terhunes in district court, claiming that the easement had not been terminated by the Extinguishment Agreement and that a second easement on the Terhunes’ land also benefitted its property. The district court entered judgment in favor of the Terhunes, and Amethyst appeals. We reverse the district court’s ruling that the easement providing ingress/egress to Amethyst’s property has been extinguished, and we affirm the district court’s ruling as to the second easement.
BACKGROUND
Amethyst holds title to a 22-acre parcel of land located in Santa Fe County, New Mexico, which is referred to as “the 22-acre parcel” throughout this Opinion. The Tеrhunes own a 5-acre parcel adjacent to Amethyst’s property, which is referred to as “Tract 3.” The subject of the parties’ dispute are two easements that run across Tract 3, which Amethyst claims benefit the 22-acre parcel. The first easement is a 40-foot, non-exclusive roadway and utility easement (the 40-foot easement) providing access to Tract 3 as well as across Tract 3 to the 22-acre parcel. Since at least 1979, access to both properties has been provided by a road known as Coyote Mountain Road located on the 40-foot easement from Old Santa Fe Trail. The second easement at issue in this case is an exprеss easement created in 1981 (the 1981 easement). We set forth the relevant history of each of these easements followed by the procedural history of this case.
The 1981 easement was created by an express written conveyance that described the 1981 easement as “an access-egress-underground utility easement along and across certain real estate described as Tracts 2 and . . . 3.”
The 40-foot easement was created by John W. Turner and Marion T. Turner in 1979 in the Turners’ warranty deed for sixty acres to Peter Pineda and Lewis Greer. The warranty deed reserved the easement for the benefit of the 22-acre parcel, which was also owned by the Turners at the time. In 1983, the Turners conveyed the 22-acre parcel to MacDuffee, including the 40-foot easement, by warranty deed. Also in 1983-, Ocia Peters, Alice Peters, and Caroline Schindler conveyed Tract 3 to Keith MacDuffee via warranty deed. That warranty deed likewise included the existing 40-foot easement providing access to Tract 3, as well as across Tract 3 to the 22-acreparcel. Accordingly,in 1983,MacDuffee owned both Tract 3 and the 22-acre parcel.
On or about February 16, 2001, MacDuffee and his wife signed a warranty deed conveying Tract 3 to the Terhunes. The warranty deed was signed on February 16, 2001, notarized on February 29, 2001, and recorded on March 7, 2001. The Terhunes’ warranty deed specifically stated that Tract 3 remained burdened by the 40-foot easement. Thus, at the time it was acquired by the Terhunes, Tract 3 continued to be expressly burdened by the 40-foot easement that provided access to the 22-acre parcel.
The parties agree that the Terhunes required that the MacDuffees sign an “Extinguishment Agreement” to extinguish access across Tract 3 to the 22-acre parcel as a precondition to their purchase of Tract 3. The Terhunes’ attorney prepared the Extinguishment Agreement, which was signed by the MacDuffees on March 5, 2001,
On March 20,2001, the MacDuffees gave a special warranty deed for the 22-acre parcel to Desert Sunrise, LLC (Desert Sunrise), which was recorded by Desert Sunrise on April 25, 2001. Five days later, on April 30, 2001, the Terhunes recorded the Extinguishment Agreement. On the date that the Extinguishment Agreement was recorded, the MacDuffees no longer owned the 22-acre parcel, having already sold that parcel to Desert Sunrise.
Approximately two years after it acquired the 22-acre parcel, Desert Sunrise sold the parcel to Amethyst by a quitclaim deed that was recorded оn April 30, 2003. Following the purchase of the property, Amethyst’s attorney performed and completed a records search and subsequently prepared corrected deeds that contained the information he located in the records concerning the easements. Amethyst’s attorney then prepared corrected deeds for the transfer of the 22-acre parcel from the MacDuffees to Desert Sunrise, as well as for the subsequent transfer from Desert Sunrise to Amethyst. Thus, the MacDuffees signed a special warranty deed corrected as to Desert Sunrise, which was recorded on September 8, 2003. Desert Sunrise next signed a newly conforming and correcting quitclaim dеed to Amethyst, which was recorded on September 22, 2003. One of the documents Amethyst’s attorney found in his record review, and subsequently referenced in both of the corrected deeds, was the Extinguishment Agreement.
Procedural History
In 2006, Amethyst filed a declaratory action against the Terhunes in district court, claiming that the 40-foot easement and the 1981 easement both provided access to and benefitted the 22-acre parcel. Amethyst specifically claimed that the Extinguishment Agreement was of no force and effect. The district court ruled on summary judgment that the 1981 easement does not benefit the 22-acre parcel. A bench trial took place on all remaining issues shortly thereafter, and the district cоurt entered judgment in favor of the Terhunes on the 40-foot easement, determining that the 40-foot easement had been extinguished across Tract 3. Specifically, the district court found that the Extinguishment Agreement was valid and effective; that the Extinguishment Agreement was in the public record at the time Amethyst acquired the 22-acre parcel; that Desert Sunrise and Amethyst, by their corrected deeds, acquiesced to the vacation of the easement across Tract 3; and that Amethyst was equitably estopped by its prior actions from denying the extinguishment of the 40-foot easement on Tract 3. This appeal timely followed.
DISCUSSION
Amethyst appeals the district court’s determination that (1) the 40-foot eаsement had been extinguished across Tract 3 and (2) that the 1981 easement does not benefit the 22-acre parcel. We address Amethyst’s specific arguments with respect to each easement in turn.
A. The 40-Foot Easement
Amethyst contends that the district court improperly enteredjudgmentthatthe 40-foot easement had been extinguished across Tract 3. Because the relevant facts concerning the 40-foot easement are undisputed and our review is of the district court’s legal conclusions, we apply de novo review. See Johnson v. Yates Petroleum Corp.,
In addressing Amethyst’s arguments regarding the 40-foot easement, we undertake two interrelated inquiries. First, we examine whether the district court erred in determining that the Extinguishment Agreement was valid and effective in terminating the 40-foot easement. Second, we address whether the district court’s application of equitable principles in this case was еrroneous, and more specifically, whether the court improperly determined thatDesert Sunrise and Amethyst, by executing corrected deeds that referenced the Extinguishment Agreement, had “acquiesced” to the vacation of the 40-foot easement across Tract 3.
1. The Extinguishment Agreement
Before addressing whether the Extinguishment Agreement resulted in the termination of the 40-foot easement, we provide some pertinent details regarding its terms and execution by the parties. The parties to the Extinguishment Agreement were the MacDuffees, who were identified therein as the owners of the 22-acre parcel, and the Terhunes, who were named as the owners of Tract 3. The Extinguishment Agreement stated that thеse two parties “desire[dj to extinguish an easement that burdens the Terhune [pjroperty and benefits the MacDuffee [pjroperty.” The easement described in the Extinguishment Agreement was the 40-foot easement. It further stated that “for good and valuable consideration, . . . [tjhe parties hereby extinguish th[e 40-foot] easement . . . on . . . Tract 3 [,]” and that the Extinguishment Agreement “shall run with the land and shall be binding upon and inure to the benefit of the land, and any person or entity vested in title to the tracts of land described herein.” Based on the foregoing language, we consider the Extinguishment Agreement in this case to constitute a release, which is typically defined as a formal agreement between parties tо terminate an easement, and we thus apply the law governing extinguishment of easements by release to this case. See Restatement (Third) of Property: Servitudes § 7.1 cmt. a (2000) (defining “releases” as “formal documents used to terminate servitudes by conveyance from the benefi[t]ted to the burdened parties”); id. § 7.3 (describing extinguishment of easements by release); see also Sedillo Title Guar., Inc. v. Wagner,
The Extinguishment Agreement further provided that it was tо be “effective upon recordation in the records of Santa Fe County, New Mexico.” But even if no such provision had been included, we would nonetheless conclude that the Extinguishment Agreement, as a written instrument affecting the title to real estate, was subject to the general recording provisions ofNMSA 1978, Sections 14-9-1 to -3 (1886-87, as amended through 1991). See § 14-9-1 (providing that “[a] 11 . . . writings affecting the title to real estate shall be recorded in the office of the county clerk of the county or counties in which the real estate affected thereby is situated”). Our Supreme Court recently applied New Mexico ’ s recording provisions to extinguish an unrecorded easement where a good faith purchaser acquired real estate without notice of the easement. See City of Rio Rancho v. Amrep Sw., Inc.,
Turning now to the relevant facts concerning the execution and recording of the Extinguishment Agreement, we observe that the Extinguishment Agreement was signed by the MacDuffees on March 5, 2001, and nearly six weeks later by the Terhunes on April 12, 2001. During this gap in execution, the MacDuffees sold the 22-acre parcel to Desert Sunrise, Amethyst’s predecessor, and Desert Sunrise recorded its special warranty deed for the purchase of the 22-acre parcel on April 25, 2001. Five days later, the Terhunes recorded the Extinguishment Agreement. Thus, on the date that the Extinguishment Agreement was recorded, the MacDuffees were no longer the owners of the 22-acre parcel. We must therefore determine whether the Extinguishment Agreement was effective in terminating the 40-foot easement even though it was recorded after Desert Sunrise purchased the 22-acre parcеl and recorded its deed.
The district court ruled that since the Extinguishment Agreement was in the public record when Amethyst acquired the 22-acre parcel from Desert Sunrise, Amethyst took title to the 22-acre parcel “with notice of, and subject to, the Extinguishment Agreement.” On appeal, Amethyst contends that the district court erred in its application of New Mexico’s recording provisions, Sections 14-9-1 to -3, to the facts of this case. Amethyst specifically argues that its predecessor in interest, Desert Sunrise, was a bona fide purchaser who acquired the 22-acre parcel without notice of the Extinguishment Agreement and, consequently, the Extinguishment Agreement was ineffective in terminating the 40-foоt easement, such that Desert Sunrise essentially acquired the 22-acre parcel with the 40-foot easement still in place. Having acquired the 22-acre parcel from Desert Sunrise, Amethyst contends that it, too, acquired the 22-acre parcel with the benefit of the 40-foot easement. In addition, Amethyst argues that the Extinguishment Agreement was ineffective in terminating the 40-foot easement because the MacDuffees no longer owned the 22-acre parcel on the date that the Extinguishment Agreement was recorded.
We agree with Amethyst that the district court erred in its application of New Mexico’s recording provisions to the facts of this case. “Section 14-9-3 provides that unrеcorded instruments asserting interests in real estate shall not affect the title or rights of purchasers to real estate if the purchaser did not have knowledge of the existence of such unrecorded instruments.” Amrep Sw.,
Accordingly, because Desert Sunrise was a bona fide purchaser without notice of the Extinguishment Agreement, it acquired title to the 22-acre parcel free of the Extinguishment Agreement, and the 22-acre parcel continued to be benefitted by the 40-foot easement. See Restatement (Third) of Property: Servitudes § 7.15 (providing that “[a]n unrecorded modification or termination of a recorded servitude is not effective against a subsequent taker of an interest in property burdened or benefi[t]ted by the servitude who is otherwise entitled to the protection of the recording act”). Stated differently, the release in this case — the Extinguishment Agreement — was extinguished under Section 14-9-3 by Desert Sunrise’s good faith purchaser status. See § 14-9-3 (providing that an unrecorded instrument shall not affect the rights or title to property of a purchaser without knowledge of the unrecorded instrument). We find the following example from the Restatement particularly instruсtive:
Dawn purchased Lot 2 relying on the record title which showed that Lot 2 was benefi[t]ted by a covenant requiring that any structure built on Lot 1 be located so as not to interfere with the view of the ocean from Lot 2. Prior to Dawn’s purchase of Lot 2, the owners of Lots 1 and 2 had entered into a written agreement by which the owner of Lot 2 released the covenant. The release was not recorded until after the conveyance of Lot 2 to Dawn, who had no notice. In the absence of other facts or circumstances, Dawn takes free of the release; Lot 2 continues to be entitled to the benefit of the covenant.
Restatement (Third) of Property: Servitudes, § 7.15 cmt. a, illus. 4 (emphasis added). Although the Terhunes later recorded the Extinguishment Agreement, this recording did not revive the Extinguishment Agreement, and it thus remained ineffective against Desert Sunrise. Tract 3 remained burdened by the 40-foot easement during the time period that Desert Sunrise owned the 22-acre parcel.
The Terhunes resolutely ignore Desert Sunrise’s bona fide purchaser status in their answer brief and instead focus on the fact that the Extinguishment Agreement was recorded prior to Amethyst’s purchase of the 22-acre parcel from Desert Sunrise. Relying on Angle v. Slayton,
Whereas Angle involved a timely recorded instrument, the Terhunes failed to record the Extinguishment Agreement until after Desert Sunrise recorded its deed for the 22-acre parcel. Angle is therefore distinguishable and does not support the Terhunes’ argument that the Extinguishment Agreement, once recorded, continued to be effective even though Desert Sunrise acquired the 22-acre parcel prior to the recording and without any notice of the Extinguishment Agreement. To permit such a result would circumvent the purpose of our state recording provisions, which is “to protect [good faith] purchasers against loss” and protect their property rights. See Amrep Sw.,
Furthermore, Amethyst correctly points out that on the date the Extinguishment Agreement was recorded, the MacDuffees no longer owned the 22-acre parcel and had no authority to extinguish easements benefitting that property. We agree. In Pollock v. Ramirez,
Based on the foregoing, we conclude that the district court erred in determining that the Extinguishment Agreement was valid and effective. However, the district court went on to conclude that by filing corrected deeds that referred to the Extinguishment Agreement, Amethyst was equitably estopped from denying the extinguishment of the 40-foot easement. We therefore consider whether the district court erred in determining that Desert Sunrise and Amethyst, by filing corrected deeds, acquiesced to the extinguishment of the 40-foot easement.
2. The District Court’s Grant of Equitable Relief Based on the Corrected Deeds
The parties’ dispute in this case was unnecessarily complicated by the actions of Amethyst’s attorney following Amethyst’s purchase of the 22-acre parcel. By drafting and recording “corrected” deeds for the MacDuffee-Desert Sunrise and Desert Sunrise-Amethyst transfers of the 22-acre parcel, Amethyst’s attorney muddied what, otherwise, would have been a relatively straightforward application of the recording provisions to the Extinguishment Agreement by the district court. Both corrected deeds that were signed by all parties to the deeds and recorded by Amethyst described the 22-acre parcel as including:
Together with a non-exclusive easement . . . (40) feet in width for utilities and right of way . . . said easement . . . partially vaсated in Book 1895, Pages 602-604, all in the records of the Clerk of Santa Fe County, New Mexico.
(Emphasis added.) The italicized language above was the recorded Extinguishment Agreement, which we have determined above was invalid and ineffective in terminating the 40-foot easement. The district court, however, determined that the reference to the Extinguishment Agreement in the corrected deeds rendered it effective against Amethyst. The court granted equitable relief to the Terhunes, finding that Amethyst had “acquiesced to the vacation of the easement” and was “equitably estopped” from denying the extinguishment of the 40-foot easement.
While we do not take lightly the actions of Amethyst’s attorney, wе ultimately conclude that the corrected deeds did not revive the Extinguishment Agreement or otherwise terminate the 40-foot easement. We are not persuaded that the reference in the corrected deeds to the Extinguishment Agreement was adequate to establish an intent of the parties to the corrected deeds to revive the Extinguishment Agreement and terminate the 40-foot easement. See, e.g., Breliant v. Preferred Equities Corp.,
Moreover, the district court’s application of equitable estoppel in this case was erroneous and, therefore, constituted an abuse of discretion. See State v. Elinski,
We note that the Terhunes аppear to concede that the district court’s application of equitable estoppel was erroneous, and they argue instead that the court “considered and applied estoppel by deed in this case.” The district court nowhere in its findings and conclusions stated that it was applying estoppel by deed. Based on the foregoing, we conclude that the district court erred in determining that the 40-foot easement had been extinguished. We hold that the 40-foot easement continues to burden Tract 3.
B. The 1981 Easement
Amethyst also appeals the district court’s ruling on summary judgment that the 1981 easement does not provide access to the 22-acre parcel. We review de nоvo an order granting or denying summary judgment. See Romero v. Philip Morris Inc.,
“[A]n easement should be construed according to the intent of the parties.” Amreр Sw.,
Viewing the language of the 1981 easement in light of the foregoing principles, we conclude that the district court correctly determined that this easement was not meant to benefit the 22-acre parcel. The 1981 easement was described in the written conveyance as “an access-egress-underground utility easement along and across certain real estate described as Tracts 2 and . . . 3.” (Emphasis added.) The 22-acre parcel was not mentioned either in the description of the easement or elsewhere in the written instrument. More significantly, the written instrument included a limitation on the estates that could be served by the 1981 easement — expressly requiring the MacDuffees, as grantees, to “agree, covenant and contract with [the] grantors” that they “will never allow the easement ... to be extended so as to serve any other lot, tract[,] or property except.. . Tract 1.” We view this language as an express manifestation of the parties’ intent that the easement was not to serve any lots other than Tracts 2 and 3 (on which the easement ran) and Tract 1. We therefore conclude that the district court did not err in its interpretation of the terms of the 1981 easement.
In addition, the easement for encroachment granted six years later by MacDuffee does not support Amethyst’s position that the 1981 easement was intended to provide access to and benefit the 22-acre parcel. Aspects of the easement for encroаchment undercut its validity. The written instrument creating the easement for encroachment named MacDuffee as both the grantor and grantee of the easement. And as Amethyst acknowledges in its briefing, the easement was granted at a time when MacDuffee was the owner of both the 22-acre parcel as well as Tract 3. It is well established that a landowner “cannot have an easement in his own land, as all the uses of an easement are fully comprehended and embraced in his general right of ownership.” Michelet v. Cole,
CONCLUSION
Based on the foregoing, we reverse in part and affirm in part the judgment of the district court. We reverse the district court’s ruling as to the 40-foot easement and conclude that the 40-foot easement has not been extinguished and continues to benefit the 22-acre parcеl. We affirm the district court’s determination that the 1981 easement does not benefit the 22-acre parcel.
IT IS SO ORDERED.
Notes
We acknowledge that the parties dispute whether the MacDuffees signed the Extinguishment Agreement on March 5, 2000, the date that was acknowledged by a notary on the document, or on March 5, 2001, which coincided with the closing and sale of Tract 3 to the Terhunes. Although it appears that the year “2000” was a mistake based on trial testimony, the date is not central to our holding.
Although this warranty deed was later “corrected” by Amethyst’s attorney, our discussion here concerns the original special warranty deed that was recorded by Desert Sunrise. We address the impact of the corrected deeds filed by Amethyst’s attorney on our ultimate holding later on in this Opinion. See Op. ¶¶ 24-27.
