Pico v. Gallardo

Citations

• 52 Cal. 206

Syllabus

<p>Purchase of Land without Notice of Mortgage.—If land is conveyed by a deed absolute in form, as security for the payment of money loaned, a purchaser from the grantee without notice that the grant was intended as a mortgage, acquires a title free from the equity of the grantor.</p> <p>Possession as Notice of Equitv. —The possession of one who has an equitable right to the land is not notice of his equity, but only evidence tending to prove his equity.</p> <p>Ejectment on Deed Intended as Mortgage. —If the plaintiff in ejectment claims under a conveyance absolute in form, but intended as a mortgage to secure a loan of money, he is entitled to recover, unless the defendant, in his answer, sets up his equities, with an offer to pay the amount of the mortgage lien, and prays that the conveyance be decreed a mortgage.</p>