Faulkner v. McHenry

Citations

• 235 Pa. 298
• 83 A. 827
• 1912 Pa. LEXIS 541

Syllabus

<p>Mortgage — Purchase of land “under and subject” to mortgage— Indemnity — Act of June 12, 1878, P. L. 205.</p> <p>1. The words “under and subject” in a conveyance import that the grantee takes the land subject to an encumbrance, the amount of which has been deducted from the agreed price, and the covenant to be inferred from it is that of indemnity for the protection of the grantor. In such a case the grantor cannot recover on the covenant from the grantee, unless he proves actual loss.</p> <p>2. Where a grantee of land under and subject to a mortgage made by his grantor defaults, and the land is sold by the sheriff in foreclosure proceedings for an amount insufficient to pay the mortgage, and thereafter a judgment is obtained against the administrator of the mortgagor’s estate for the deficiency, the administrator cannot recover from the grantee of the land on the implied covenant of indemnity, without showing that he had paid the judgment or had sustained some loss by reason thereof.</p>