Morgan v. Clayton

Citations

• 61 Ill. 35

Syllabus

<p>1. Trust—what constitutes. When property is sold by agreement of several interested parties to one of their number, to be held in trust for protection of their interests, their intention may be shown, by parol or memorandum in writing.</p> <p>2. Same—to be fulfilled strictly. A trust must be executed within its terms. An unauthorized sale by the trustee will be set aside at the instance of any injured party.</p> <p>3. Notice—purchase for value. A purchase at an unauthorized and. voidable sale must be bona fide, for a valuable consideration,without notice of existing equities, or collusion, or it will be set aside.</p> <p>4. Same—collusion—irregularity. Where the purchaser is of kin to the wrongful seller; takes title without the usual preliminary negotiation as to price and terms of sale; when payments are nominal and not provided for in the usual manner, and the vendor is left in control of the property—there is strong presumption of collusion and fraud.</p> <p>5. Quit-claim deed—how far effective. A quit-claim deed will as effectually pass the title and covenants running with the land as a deed of bargain and sale, if no words restrict its meaning.</p> <p>6. Same. He who, accepting a quit-claim deed, knowing of a former incumbrance, does not cancel that incumbrance on paying it off, but takes au assignment of it to himself, furnishes the presumption that he considers himself holding as a creditor rather than a bona fide purchaser, and keeps the way open for a redemption by the original mortgagor.</p> <p>7. Value of improvements under defective title. The holder under a defective title, though with notice, may be held a mortgagee in possession, and be entitled to repayment of advances made in good faith and expended in improvements.</p>