Mairs v. Bank of Oxford

Citations

• 58 Miss. 919

Syllabus

<p>1. Vendor’s Lien. Security for part of purchase)-money. Subsequent purchaser. M. sold a tract of land to E. for $3,800, for which the latter gave his five promissory notes; but the deed of conveyance acknowledged receipt of the pur- - chase-money. As a part of the transaction, E. gave a deed of trust on the land purchased, to secure three of the notes. The deed of trust concluded with these words: “But the vendor’s lien for the other two notes to be unimpaired.” The notes secured by the deed of trust were subsequently paid, and an entry of satisfaction in full was made on the margin of the public record of the deed of trust. Afterwards E. obtained a loan of $2,000 from the Bank of O., executing a mortgage on this land to secure it. M. then filed a bill to enforce the vendor’s lien for the payment of the two notes unpaid, claiming that the bank had notice of the lien for these notes by the concluding recital of the deed of trust, and that the satisfaction of that instrument extinguished it only as to the notes secured by it. Held, that the recital referred to was inserted merely to exclude the idea that the lien of these two notes was waived by the deed of trust. Subsequent purchasers were only bound to look at the deed of conveyance and the deed of trust for notice of the vendor’s rights. As the deed of conveyance acknowledged payment of the purchase-money, a purchaser would, as to it, take the land freed of the vendor’s equitable lien. And as the record of the deed of trust showed that it had been satisfied in full as to all that it granted, it might .be treated by a purchaser as obliterated. Therefore the mortgage to the bank must prevail over M.’s equitable lien.</p> <p>2. Same. Recital in deed of trust. Contract. Satisfaction.</p> <p>_ The recital above quoted from the deed of trust is not a contract in relation to the land, independent of the deed of trust, within the meaning of sect. 2307 of the Code of 1871, which provides that “every contract in relation