Love v. Butler

129 Ala. 531
Supreme Court of Alabama·Decided November 15, 1900·Published·Cited by 12 cases

Opinion

TYSON, J.

It seems to be conceded, at least not questioned, that Matilda Butler, the widow of the testator, took a life estate in the land under the will of her husband, and the complainants took a remainder.

Butler, the testator, purchased the laud, by paying [536] two thousand 'dollars, in cash, and executing Ins two promissory notes for two thousand dollars each, ■ find went into possession. He paid one .of the notes, and made, a partial payment on the other, leaving.a balance due upon it of some fourteen or sixteen hundred dollars, at the date of Jhis death in 1879. The sale and purchase was effectuated by. the payment of the cash and tlie execution of the nqtes by Butler to the vendors, who executed to him a bond for title covenanting to convey title.to him of .the land upon .the payment by him of the purchase money notes. On the. 16th day of April, 1881, the life tenant paid to the vendors the balance of the purchase money and they executed to her a deed to the land conveying the,legal title thereto. On the 18th day of April, 1881, Matilda Butler executed a deed to - one of the respondents, J. Y. .Love, conveying, the legal title to the land to him. The life tenant died, in the year 1884 or 1885. Love immediately took possession .of the land under the conveyance .to him and, remained continuously in, the .possession of it up tq March, 1897, collecting the rents for it, .when he,Ayas‘declared,a. non compos mentis, since which time his .wife has been in the possession of it, collecting the rents. This hill ^vas filed July 18th, 1900.

From .the foregoing statement, of ■ facts it will he observed that, nearíy. fifteen years elapsed between the death of the life, tenant,an.d the filing of the bill, and nearly nineteen years since the execution of the deeds by the vendors to Matilda Butler and by her to Love. These, .conveyances were recorded, respectively, April 21st, 1881, and April 23d, 1881.

The-theory of the hill is that the vendors by reserving, the legal title to the land as a security for the payment of the purchase money, were trustees for the testator and that after his death, they became trustees for the complainants as remaindermen under his will. That by the acceptance of the deed from them Matilda Butler acquired, the legal title to the land subject to the trust and, became a trustee,, and that Love also became a trustee by acquiring the legal title from her, it being averred that he had. full knowledge of the facts, The [537] main defense invoked by tlie 'demurrer to tlie bill is tlie statute of limitation oí ten years.. “Tlie vendor of the lands, not parting wit-li his estate, retains it as a security for tlie payment of tlie purchase money. To the contract of sale, in such case, all the. essential ingredients of a mortgage attach.” — Stringfellow v. Ivie, 73 Ala. 209; Hester v. Hunnicutt, 104 Ala. 285.

In Bankhead v. Owen, 60 Ala. 467, it is said: “There, can be no just and proper distinction drawn between a mortgage to secure the payment of the purchase money, executed contemporaneously with the conveyance of the land, and a reservation of the legal estate, as a security for its payment.”

In Conner v. Banks, 18 Ala. 44, this principiéis stated in this language: “It is a well settled rule, that- the vendor of real estate, who has not executed a deed to the purchaser, holds the legal title as a security for the payment of the purchase money; and if he has executed a bond to make titles when the purchase money is paid, the contract in a court of equity will 'be-considered in the nature of a. conveyance to tlie purchaser and a re-conveyance back, by way of mortgage.”

To the same effect is Haley v. Bennett, 5 Port. 452; Chapman v. Chunn, 5 Ala. 397; Kelly v. Payne, 18 Ala. 371; Lowery v. Peterson, 75 Ala. 109.

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Love v. Butler, 129 Ala. 531 (Ala. 1900).

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