Jenkins v. Rosenberg

Citations

• 105 Ill. 157
• 1882 Ill. LEXIS 248

Syllabus

<p>1. Purchaser from one holding deed, without notice it was a mortgage. Although a deed absolute on its face may be only a security for the payment of money, still a purchaser from the grantee in possession, without notice that his vendor’s deed was but a mortgage, will be protected in his purchase, and hold the property free from any equity of redemption.</p> <p>2. Notice—of fact that a deed was only a security. The deposition of the grantor in a deed, filed in a case in which a subsequent purchaser from the grantor was a party, in which deposition the grantor testified that the deed was made free and clear of all incumbrances, the grantee agreeing to allow him a lib eral price for the same on his indebtedness if the property was made clear, it not appearing from the deposition that the property should at any time, on any conditions, be reconveyed, if any notice at all, is not sufficient to charge such purchaser with notice that the witness’ deed was intended as a security, the deposition itself failing to show that such was the fact.</p> <p>3. A party proving a claim against the estate of a bankrupt is not chargeable with notice that a deed of the bankrupt was intended only as a mortgage, from the fact that the lots conveyed by such deed were embraced in his schedule of assets. The party so proving his claim was thereafter as much a stranger to the schedule as if he had never proved up his claim.</p> <p>4. Where a party had conveyed lots by a deed absolute in form, but in fact intended only as a security, and afterward became a bankrupt, the presence of his assignee and the assignee’s attorney at a meeting of creditors of the bankrupt, to take steps for the leasing of the lots pending litigation concerning them, such assignee not executing the agreement for leasing and making no declaration of any interest in the bankrupt, is not sufficient to put a subsequent purchaser from the bankrupt’s grantee upon inquiry, and charge him with notice of the nature of the bank