Savings & Loan Society v. Burnett

Citations

• 4 Cal. Unrep. 701
• 37 P. 180

Syllabus

<p>Trust Deed—Security for Future Advances.—A deed of trust to secure $20,000, and also all further indebtedness of the grantor to the third party that might be contracted during the continuance of the trust, not exceeding $35,000, provided that on payment the trustees should reconvey to the grantor, his heirs or assigns, and contained a power of sale on default. Held, that where such grantor afterward made an absolute conveyance to B., and paid the original debt secured, such deed of trust afforded no security for other sums advanced by such third party to the grantor for the purposes stated therein, with actual notice of such conveyance, and that a purchaser at the trustee’s sale made on default in payment of such advances held the title in trust for B.</p> <p>Trust Deed—Quieting Title.—In an Action by Such Purchaser to quiet title, the court found that the grantor was. seised in fee originally, that he executed the deed of trust, and that default was made, and the property sold to plaintiff. Held, that such findings did not establish a full fee simple title in plaintiff, where it appeared that such default in payment was of sums not secured by the deed of trust.</p> <p>Trust Deed—Title of oPurchaser.—Even if §2,000 of the original debt secured was unpaid, a sale of the property regarded by plaintiff as sufficient security for $35,000 did not give an absolute legal title to the purchaser having knowledge of all the facts.</p> <p>Quieting Title.—The Complaint in an Action to Quiet Title, alleged that the grantor was holding the property against his own deed, and that plaintiff was seised of and holds all the estate, right, title and interest, at law or in equity, which such grantor ever had or could acquire. The answer specifically denied such allegations and alleged the execution of a deed to one B., but asked no affirmative relief. Held, that the pleadings warrant findings and sustain a judgment for defendants.</p>