Larson v. Wood

25 N.W.2d 100, 75 N.D. 9, 1946 N.D. LEXIS 52
CourtNorth Dakota Supreme Court
DecidedNovember 27, 1946
DocketFile 6994
StatusPublished
Cited by31 cases

This text of 25 N.W.2d 100 (Larson v. Wood) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larson v. Wood, 25 N.W.2d 100, 75 N.D. 9, 1946 N.D. LEXIS 52 (N.D. 1946).

Opinion

*12 Btjeb, J.

This is an action involving possession of real property and collection of past due rent.

The plaintiff, as owner, alleges: The defendants had been in possession under a lease, Ex. A; that the term of the lease had expired ; rent was unpaid, defendants continued in possession and refused to deliver.

Defendants’ amended answer denies “they are holding possession of said property under the terms of a Lease and allege that said property was sold . . . under and by virtue of the terms of a Contract for Deed, .... That pursuant to the terms of said Contract . . . took possession . . . and still hold possession . . . .” That they made and paid for “permanent alterations and improvements, which became a part of said property; . . . and cannot be removed . . . .” And that “on the 15th day of April 1944 One Thousand Three Hundred Forty-four and 43/100 ($1,344.43) Dollars in cash was tendered to the Plaintiff as the balance due on said Contract for Deed which tender was refused . . . .” To this amended answer they attach a copy of Ex. A. their alleged “Contract for Deed” and make it a part thereof. Thus both parties claim under this Ex. A. — an instrument denominated “Lease with Option to buy.”

The chronology of the transactions resulting in the execution of this instrument is as follows: D. F. McGowan, a real estate dealer of Grand Forks, had an interview with the defendant regarding the property; November 25, 1940, McGowan wrote to the plaintiff, (Ex. 7), to the effect that he was informed the plaintiff owned the property involved and that,

“A friend of mine who is a very responsible party and who owns considerable real estate would like to arrange to purchase *13 this property if suitable terms and conditions could be arranged.

This party who is interested wishes to remodel the property and make it over into small apartments.

If you are interested, I could probably arrange to be in Minneapolis ... if you . . . could arrange to meet me.”

McGowan went to Minneapolis, met the plaintiff and told him he was interested in the property for Kenneth Wood. Some discussion took place and McGowan returned home. December 12, he wrote to the plaintiff, (Ex. 5), stating, “Since returning home, I have had several talks with Kenny Wood regarding the proposed sale of your property to him and his plans for remodeling same.” He further states, “I enclose herewith for your consideration a Lease with Option to buy between you and Mr. Wood for the purchase of the property. You will note that it is for a period of three years at 6% interest with monthly payments of $65.00 to include taxes, fire insurance, interest and principal. I figure that at the end of that time, Mr. Wood would owe a balance to you of about $2,500.00 and would then be able to secure a loan to pay you up in full.”

He further states: “With this kind of an agreement, title to ihe property remains in you until the Option i§ exercised and if he fails to exercise his Option within three years by paying you the balance due, then his payments only constitute rent and his lease and option would expire. You would then be free to sell the property to some one else if you so desired.”

He sets forth how Mr. Wood would be able to finance the deal, and writes, “I would recommend that you accept Mr. Wood’s proposition as I believe it is fair and equitable for both of you. He wishes to start in next Monday with the improvements,

The proposed “Lease with Option to purchase,” drafted by McGowan and known as Ex. A., is as follows:

“LEASE WITH OPTION TO BUY
THIS AGREEMENT, Made and entered into this 14th day of December, A. D. 1940, by and between CALEB R. LAESON *14 of the City of St. Paul, Minnesota, party of the first part, and KENNETH M. WOOD and HAZEL PEARL WOOD, both of the City of Grand Porks, North Dakota, parties of the second part, WITNESSETH:

That the party of the first part has this day leased and rented to the parties of the second part, the following described real estate in the County of Grand Porks, State of North Dakota, to-wit:

Lots One (1) and Two (2) in Block Thirty (30) of Lindsay’s Addition to the City of Grand Porks, North Dakota.

That the said parties of the second part hereby agree to pay rental for said premises for and at the rate of Sixty-five ($65.00) Dollars per month, payable on the first day of each and every month in advance, for the term and period of this lease, the first payment to be made April 1st, 1941, at which date the lease shall commence and shall terminate on the 31st day of March, 1944.

Parties of the second part agree to pay all taxes and assessments levied against the above described property for the year of 1941 and all subsequent years during the period of this lease, which taxes however are included in the monthly rental of $65.00, and are to be paid by the party of the first part out of said rents.

It is hereby agreed by and between the parties hereto that the parties of the second part must heat the above described premises during the term of this lease at their own expense.

It is further agreed by and between the parties hereto that the parties of the second part have the right to sublet the above premises during the period of this lease.

Parties of the second part further agree to use said property in a careful and prudent manner and to keep the same in good repair at their own expense.

Parties of the second part also agree to keep the building now situated upon said real estate insured against fire and tornado loss in some reliable insurance company in the sum of not less than $3000.00 during the continuance of this lease for the benefit of the party of the first part as his interest may appear at the time of loss. The premium on such insurance to be paid by the *15 party of the first part from the proceeds of his rents shown above.

Party of the first part hereby permits said parties of the second part to at once start remodeling the building on the above described premises to make same into four apartments as agreed upon, and further agrees to pay for said improvements to the extent of not to exceed $750.00, and all costs and expense for such improvements over and above that amount are to be borne and paid by the parties of the second part, which they hereby agree to do.

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Cite This Page — Counsel Stack

Bluebook (online)
25 N.W.2d 100, 75 N.D. 9, 1946 N.D. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-v-wood-nd-1946.