56 S.E. 938 | N.C. | 1907
This is a controversy without action, submitted to the court for decision upon the following agreed statement of facts:
The plaintiff Carpenter, on 27 April, 1906, sold his farm to defendant Edwards for $3,500, of which amount said Edwards paid $800 cash and executed a deed in trust to H. A. Foushee to secure the sum of $2,400. For the balance of $300 Edwards executed his bond under seal (292) in the following words and figures, to wit:
300. DURHAM, N.C. 27 April, 1906.
On or before 6 November, 1906, with interest from 1 May, 1906, I promise to pay to the order of A. M. Carpenter $300, for balance of purchase money of the tract of land this day purchased by me of him, containing 95 acres, less 3.58 A. See deed from J. W. Barbee and wife in Deed Book 23, page 271, for description of same.
Witness: J. E. OWENS.C. M. EDWARDS. [SEAL] *203
Said instrument was on 30 April, 1906, probated and recorded in the office of the register of deeds of Durham County. The tract of land conveyed by Carpenter to Edwards is accurately described in the deed recorded in the office of said register of deeds. On 14 June, 1906, said Edwards, being indebted to B. L. Duke in the sum of $1,786.12 executed to him a deed in trust for the purpose of securing the payment thereof, conveying the same tract of land described in the deed from Carpenter to him. Said deed in trust was duly recorded in the office of the register of deeds of Durham County. Thereafter, the said H. A. Foushee, trustee, pursuant to the power conferred upon him by the aforesaid deed, sold the said land for the sum of $3,250, and, after paying the debt of $2,400 secured thereby, has in his hands or to his credit in bank, from the proceeds of said sale, $647.03, which he is ready to pay to the parties who may be adjudged entitled thereto. The whole amount of the note of $300 is due and unpaid and no part of the debt to B. L. Duke, secured in the deed in trust to him, has been paid. Plaintiff claims that he is entitled to be paid, out of the amount in the hands of Mr. Foushee, the amount due on his note, while defendants, Duke and his trustee, J. A. Giles, claim said sum by virtue of the deed in trust of (293) 14 June, 1906. His Honor adjudged that defendant Foushee pay the plaintiff the note of $300, with interest, and the balance to J. A. Giles, trustee. Defendants Duke and Giles, trustee, appealed.
After stating the case: Plaintiff's counsel, in a well considered and interesting argument before us, conceded that the equitable vendor's lien which prevails in England, unless changed by statute, and in several of the States of the Union, does not obtain in this State. Womble v. Battle,
In the view which we take of the record, the plaintiff has no equity in, or other right to, the land. Assuming, as contended by counsel, (295) that judgment be rendered in this controversy against Edwards on the note, we fail to see how he would have any other remedy than a right to enforce a judgment lien then attaching to the fund which, for this purpose, stands in the place of the land. Of course, such lien would be subject to the right which Duke acquired by the trust deed, because, as said by Ashe, J., in Dail v. Freeman,
We conclude, therefore, that the plaintiff has no equity in, or right to, the land which can be asserted, either against the vendee Edwards or his grantee Duke or his assignee Giles. The interesting discussion, therefore, of plaintiff's counsel in regard to conflicting equities and their priorities, growing out of the fact that Edwards transferred to Duke only an equitable title, the legal title being in Foushee, cannot avail the plaintiff, because he has no equities or rights to be adjusted. Much of the learning in this branch of equity jurisprudence has become of little practical value because of our registration laws. A mortgage of an equitable interest, right or title, when recorded, is entitled to the same priority as a legal title. *206
In the view which we have taken of the case, the registration of the note did not affect the rights of the parties. There was no contract to convey land entitled to registration. Judges have frequently (297) expressed a regret that the vendor of land who has, under a misapprehension of his rights, been unable to collect the purchase money, especially when creditors, whose debts preexisted the acquisition of the title by the debtor, have taken precedence; but, as said by Ruffin,C. J., in Womble v. Battle, supra, the doctrine of the vendor's lien was unsuited to conditions in this State and produced much litigation and uncertainty. A sound public policy, adopted by the Legislature and enforced by the courts, demands that, for certainty of title and easy alienation of property, secret trusts, obscure equities, and uncertain liens shall not prevail against titles acquired by deeds and perfected by public registration.
For the reasons set forth, we hold that there is error in the judgment. The defendant Duke is entitled to the amount in the hands of Foushee, trustee, less the cost of this controversy, which he will pay out of the fund.
Reversed.
Cited: Sykes v. Everett,