Charles v. Scheibel

128 Misc. 275, 218 N.Y.S. 545, 1926 N.Y. Misc. LEXIS 783
CourtNew York Supreme Court
DecidedNovember 30, 1926
StatusPublished
Cited by6 cases

This text of 128 Misc. 275 (Charles v. Scheibel) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles v. Scheibel, 128 Misc. 275, 218 N.Y.S. 545, 1926 N.Y. Misc. LEXIS 783 (N.Y. Super. Ct. 1926).

Opinion

Michael J. Larkin, J.

The defendants contend that no valid agreement was made and entered into; that the alleged agreement was delivered conditionally and was not to become binding until the purchase of the property met the approval of their children; that no part of the consideration of sale was paid; that defendants never entered into possession of the property and exercised no rights of ownership thereof; that the title, possession and control of the property at all times remained in plaintiff; that plaintiff surrendered no rights respecting the property; that no title was tendered to defendants and no offer to convey was made; that the contract was not recorded, and generally that defendants have no interest in the property and that there is no equitable lien to foreclose.

The parties to this action are residents of the city of Syracuse, N. Y., and on and prior to the 11th day of May, 1926, plaintiff was the owner and in possession of a certain house and premises known as No. 554 West Colvin street, in that city.

On the said date an agreement in writing was signed by the parties to this action, whereby the plaintiff agreed to sell and the defendants agreed to purchase the premises in question, together with certain fixtures and personal property therein contained, for the sum of $9,500, $300 of which was to be paid upon the signing of the contract, $2,700 on or before June 1, 1926, the time when title was to be passed, and the balance, amounting to $6,500, was to be paid by the defendants assuming and agreeing to pay two mortgages aggregating said sum.

No question of fraud or misrepresentation is involved in this litigation. It is claimed, however, on the part of the defendants that the written agreement did not rise to the dignity of a contract and did not become effective or binding for the reason that it was delivered upon the condition and with the express understanding and agreement that it would not become operative as a contract until the defendants had caused a further examination of the premises to be made and thereafter consented to accept the same; [277]*277that such examination was to be made by the children of defendants and the purchase was to be made subject to their approval and consent.

At the time of the signing of the agreement in question the defendant .John T. Scheibel also signed and delivered a check in the sum of $300, payable to the order of plaintiff’s real estate agent and representative, to be applied as part payment on the purchase price. The payment of this check was thereafter stopped.

There is not sufficient evidence in the record upon which to base findings of fact that the agreement in question was not to become binding upon the parties until some future event happened or transpired and that there was a conditional delivery of the contract and, therefore, that it did not become operative and binding upon the parties, but, on the contrary, the evidence warrants and justifies a finding that a valid, enforcible agreement was made and entered into by and between the parties at the time in question.

The defendants were interested in selling the home then occupied by them and the purchase of a new one. The same agency had shown defendants other properties in Syracuse which were in the market for sale.

The agreement was prepared at plaintiff’s home by a representative of the real estate agency which had for sale plaintiff’s property and the parties signed the agreement in his presence, and in the presence of another representative of the same agency, and was left with him, together with the check of $300, as before stated. The court is of the opinion that it was the intent of the parties that there should be an immediate delivery for the purpose of making the agreement mutually binding and operative. (Sarasohn v. Kamaiky, 193 N. Y. 203, 214.)

Immediately after the agreement was signed and delivered the defendant John T. Scheibel bought of plaintiff a small mirror and paid the sum of one dollar therefor. There were also some conversations with reference to the purchase of plaintiff’s household effects by defendants and their children, the plaintiff stating that she was to sell her household effects. It also appears that the plaintiff following the date when the agreement was signed did actually sell and dispose of practically all of her household goods and effects and later did remove from the premises.

It also appears that after the refusal of defendants to carry out their part of the agreement they furnished money for the purchase of another piece of property, title to which was taken in their daughter’s name.

The main and most serious question to be determined is whether plaintiff, as vendor, has a lien which may be foreclosed, the defend[278]*278ants having made no payment and not having taken possession of the premises. The law is now firmly settled and established that upon and from the time of the execution of a contract for the sale of land the vendor becomes a trustee of the land for the benefit of the purchaser, retaining a hen for the purchase price, and the vendee becomes the equitable owner of the land. (Williams v. Haddock, 145 N. Y. 144, 150; Elterman v. Hyman, 192 id. 113; Occidental Realty Co. v. Palmer, 117 App. Div. 505, 506; affd., 192 N. Y. 588; Brownell v. Board of Education, 123 Misc. 64; affd., 211 App. Div. 823; revd. on other grounds, 239 N. Y. 369.)

The hen of an unpaid vendor is good against a vendee and against the whole world, unless waived by the vendor or defeated by ahenation by the vendee to a purchaser for value and without notice. (Seymour v. McKinstry, 106 N. Y. 230, 239.) And a vendor’s hen arises in conveyance of an equitable title in land as well as a fee conveyance or legal estate. (Warren v. Fenn, 28 Barb. 333.)

The court is of the opinion that a vendor’s hen may be upheld even though the vendor remains in possession of the premises and no part of the purchase price has been paid. (Elterman v. Hyman, supra; Troast v. Anjou, 172 N. Y. Supp. 383, 385; Brownell v. Board of Education, 123 Misc. 64; affd., 211 App. Div. 823; revd. on other grounds, 239 N. Y. 369; Pellegrino v. Giuliani, 118 Misc. 329, 331.)

In 39 Cyc. 1641, it is stated: The rule supported by the weight of authority is that since a purchaser under a binding contract of sale is in equity regarded as the owner of the property, he is entitled to any benefit or increase of value that may accrue to it, and must bear any loss, injury, or depreciation which it may sustain, unless occasioned, by the negligence or default of the vendor; and if there is a valid and binding contract between the parties, the application of the rule is not affected by the fact that the purchase-price has not been paid, or that the purchaser is not in possession, or that under the provisions of the contract possession is not to be delivered until a date Subsequent to that when the loss or injury occurred.”

The foregoing authorities lead to the conclusion that the plaintiff had a vendor’s lien, which she had a right to foreclose for the protection of her rights.

Defendants also assert that plaintiff has never tendered any title and has never offered to convey the premises.

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Bluebook (online)
128 Misc. 275, 218 N.Y.S. 545, 1926 N.Y. Misc. LEXIS 783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-v-scheibel-nysupct-1926.