Carnation Lumber & Shingle Co. v. Tolt Land Co.

Citations

• 103 Wash. 633
• 175 P. 331
• 1918 Wash. LEXIS 1142

Syllabus

<p>Vendor and Purchaser — Option Contract — Title—Approval by Mortgagee — Construction. Where lumber and shingle mill property, mortgaged to a bank for $23,177.50, was leased at $300 per month, with option to purchase by warranty deed for $18,750 if taken within two years, or for $14,000 if taken in eighteen months, and the bank, which was a party to the negotiations, made indorsement on the contract that it “ratified, confirmed and approved” all of the terms of the agreement, rent being paid to the bank, the effect of the contract and indorsement was to charge the vendor and the bank with the burden of conveying by good and sufficient deed, free of the mortgage, if the option to purchase were exercised.</p> <p>Insurance — Option Contract — Application of Insurance Money —Specific Performance — Equity. In an action for the specific performance of a contract to convey property leased with option to purchase, insurance money paid on policies written in the names of all the parties interested must be applied as their interests may appear; and where a mortgagee had approved the contract and was with the vendor charged with the burden of conveying by good deed, free from the mortgage, the insurance money must be credited to the vendee upon the purchase price, where the option to purchase had been exercised; since equity takes no account of a change in form or character of property.</p> <p>Same. In such a case, the parties contracted against the rule that under a mere executory option, insurance money goes to the owner, where the contract provided that the purchaser should keep the property insured for at least $14,000 payable to the vendor as its interest may appear, and gaye the purchaser the option to apply the proceeds of the policies to repairing or rebuilding.</p> <p>Vendor and Purchaser — Tender. A tender of the sum due upon exercising an option to purchase leased land may demand that infirmities in the title disclosed by the abstract be cleared to comply with the