Doolittle v. Cook

Citations

• 75 Ill. 354

Syllabus

<p>1. Notice —possession of land, notice of occupants equities. The actual possession of land, by a purchaser holding a bond for a deed from his vendor, is notice of his rights to one taking a mortgage on the same land from the vendor, and the mortgagee will take a lien only on the vendor’s right.</p> <p>2. Same—who affected with, by the recording of a deed or mortgage. Under the recording laws of this State, the recording of a deed or mortgage is constructive notice to subsequent purchasers and creditors of the grantor, only. It affords no notice whatever to a prior purchaser from the grantor, and without actual notice he may lawfully complete his payments to his vendor, without becoming liable to a subsequent vendee, mortgagee or grantee.</p> <p>3. Mortgage—rights of mortgagee taking mortgage of vendor of land, to unpaid purchase money. Where, after the sale of land and giving a bond for a deed, and the taking of possession by the purchaser, the vendor executes a mortgage on the same to secure a debt to another, he still retaining the purchaser’s notes, the mortgagee will have the right to enjoin the payment of the notes to the vendor, until the mortgage debt is satisfied, and, if that debt is due, have the notes paid to him; but the purchaser in such a case cannot protect the mortgagee’s rights, but is bound, in the absence of any proceeding to, enjoin him, to pay his notes to the legal holder when, presented to him.</p> <p>4. In such a case, where the notes maturing after the maturity of the mortgage debt, had been assigned to a bona fide purchaser on a precedent debt, without notice of the mortgagee’s equitable claim to them, the purchaser, not having any defense and being unable to resist their collection, will be protected in paying them, and will not be liable to the mortgagee, even if he had notice of his rights, and the assignee will also be protected against the mortgagee’s claim.</p> <p>5. Where a vendor of land, after giving the purchaser a bond for a d