Taylor v. Interstate Investment Co.

Citations

• 75 Wash. 490
• 135 P. 240
• 1913 Wash. LEXIS 1738

Syllabus

<p>Vendor and Purchaser — Bond fob Deed — Construction—Present Sale — Vendor’s Equitable Lien. Where the purchaser of land paid one-third of the purchase price, gave notes for the balance, and received a bond for a deed, which covenanted for immediate possession, authorized sales by the vendee, contained no provision for a forfeiture, and did not make time of the essence of the contract, the transaction is a present sale and not an executory contract to sell,- and the vendor retains title as security only, the bond creating an equitable mortgage.</p> <p>Same — Vendor’s Lien — Remedies oe Vendor. An equitable mortgagee, under a bond for a deed evidencing a present sale without right to declare a forfeiture, cannot rescind and sue in ejectment or to quiet title, the only remedy being to foreclose the lien to satisfy the debt.</p> <p>Same — Vendor’s Lien — Remedies—Enforcement—Pleading—Complaint — Tender. An equitable mortgagee, under a bond for a deed evidencing a present sale without right to declare a forfeiture, who mistook her remedy and sued to quiet title and recover possession, is not, for that reason, out of court, where from the facts pleaded in the complaint, it appears that she is entitled to an accounting and to a foreclosure of the lien to satisfy the debt; and it is immaterial that she did not tender a deed where the vendee remained in possession claiming payment in full; since such tender is not essential in equity where it can be provided for in the decree.</p> <p>Corporations — Dissolution — Property Rights — Contracts — Abandonment. The dissolution of a corporation which was an equitable mortgagor of land, does not entitle the mortgagee to disregard the contract and recover the property in ejectment on the theory of an abandonment; since the rights of the corporation passed on dissolution to the stockholders, subject to corporation liabilities, and the antecedent contract could be enforced against the corporate property by an action in equity; especi