137 Iowa 48 | Iowa | 1908
The precise point at issue is whether the record of the deed to Voss imparted constructive notice of that transaction only, or of that and what was done with the outstanding contract of sale executed by Voss at the same time. Of course, a purchaser of Voss might have relied on the record of the deed to him without looking farther. But plaintiff claims through a deed from Bradford when the latter owned the equitable title to the land subject to both the claims of Voss and Thomas. In some of the States the conveyance of the land by deed, though absolute in form, as security, is construed to be a mortgage only, and not to pass the fee, but in this State the legal title passes, and the borrower, in order to protect himself, must exercise the right of redemption within the period of the statute of limitations. Richards v. Crawford, 50 Iowa, 494. As between Bradford and Voss, the deed and note of the former, with the contract of the latter, constituted a mortgage as is conceded by the parties, but differing from an ordinary mortgage in that, whereas title in the latter remains in the grantor, title passed to Voss under the deed. Brush v. Peterson, 54 Iowa, 243. See Bigler v. Jack, 114 Iowa, 667. In the absence of inquiry, Lindberg had constructive notice that the highest title was in Voss, and not Bradford, his grantor. And, this being so, he must be held to have taken with notice of any interest or claim of Voss less than an absolute ownership of land; i. e., that he held it as security for the payment of a loan. Clemons v. Elder, 9 Iowa, 272; Kennard v. Mabry, 78 Tex. 151 (14 S. W. 272) ; Marston v. Williams, 45 Minn. 116 (47 N.
It does not follow, however, that he was also charged thereby with notice of the assignment of the contract to Thomas which had not been recorded. The record of the deed cannot be held to impart other information save of the transaction between Voss and Bradford. True, Voss was advised of such assignment, but this was not suggested by the record, and though he might, he was not bound to reveal this fact upon inquiry. As no investigation was made by Lindberg, he can be held to have known only that which would have been ascertained by such inquiries as the record would have suggested to an ordinarily prudent man (Shoemake v. Smith, 80 Iowa, 655), and surely the mere circumstance that the contract was assignable would not have led him to inquire of Voss, who neither had possession of the contract