Dempwolf v. Bill

Citations

• 213 Pa. 163
• 62 A. 645
• 1906 Pa. LEXIS 440

Syllabus

<p>Deed — Escrow—Passing of title — Estoppel—Covenant—Mortgage.</p> <p>A purchaser for value has a right to act on the faith that a deed has been signed, sealed, acknowledged and delivered as it purports to be, and the presumption is that it has been so executed and delivered by proper parties. A mortgagee is a purchaser for value.</p> <p>An owner of a mill deposited with a trust company a deed for his property, in escrow. By the terms of the escrow agreement he was to receive money and stock of a corporation, which was to take title to the property. Subsequently he was notified that the option in the escrow agreement had been exercised. The trust company delivered the deed to the purchaser, and forwarded the money and stocks to the grantor who receipted for them. About the same time the grantor executed a lease whereby he covenanted to operate the mill for a period of sixty days as lessee. Both before and after the receipt of the cash and stocks he stated at different times and to different persons that he was in possession of the property as a tenant under the lease, and after the organization of the corporation he acknowledged his liability for rent to the company. After the delivery of the deed the company executed a mortgage on all its property, of which the grantor had notice. On a subsequent default the mortgage was foreclosed, and the properties were sold. In an action of ejectment by a purchaser at the foreclosure sale against the grantor in the deed to recover the mill, the grantor maintained that no title had passed from him because of the failure of the trust company to see that certain other conditions of the escrow agreement had been complied with. He also offered evidence that at the foreclosure sale he had given public notice of his claim of title. Held, that the court committed no error in giving binding instructions for plaintiff in the ejectment.</p> <p>Deeds — Construction—Condition—Covenant.</p> <p>Where words of a deed can be construed either a