Rowe v. Walker

441 S.E.2d 156, 114 N.C. App. 36, 1994 N.C. App. LEXIS 269
CourtCourt of Appeals of North Carolina
DecidedMarch 15, 1994
Docket929SC918
StatusPublished
Cited by6 cases

This text of 441 S.E.2d 156 (Rowe v. Walker) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rowe v. Walker, 441 S.E.2d 156, 114 N.C. App. 36, 1994 N.C. App. LEXIS 269 (N.C. Ct. App. 1994).

Opinions

WYNN, Judge.

In January 1970 Jack and Martha Chavis owned a 70.06 acre tract of farmland. Most of the tract lies in southern Person County, but approximately 7.7 acres lie in northern Orange County. On 19 January 1970, Clyde and Mary Walker (defendants’ predecessors in title) acquired an approximately fifty-acre tract of property in Orange County, adjoining the Chavises’ land to the south. Shortly thereafter, the Chavises granted the Walkers a twenty-foot wide easement across the Chavises’ property to allow the Walkers to use a farm road providing access from the north through Person County to the Walkers’ Orange County farmland. The easement was recorded in the Orange County Registry on 23 January 1970. Although a significant portion of the easement lies in Person County, it was not registered there at that time.

On 28 December 1979 the Chavises sold their land to Charles and Linda Hall. On 2 October 1987, plaintiffs purchased the land from the Halls. Plaintiffs promptly registered the deed in both Orange County and Person County.

The easement roadway passed over a dam in the vicinity of the Orange/Person county border. In October 1987, in order to drain a small pond, plaintiffs breached this dam, thereby destroying use of the road and use of the easement at that point. Defendants asked plaintiffs to rebuild the dam. Plaintiffs refused.

On 6 July 1988 defendants recorded their easement in Person County.

[38]*38On 20 October 1988, defendant Norman Walker and others undertook reconstruction of the dam. On 21 December 1988, plaintiffs instituted this proceeding to enjoin defendants and their invitees from using the easément. Plaintiffs also sought an order quieting title to the portion of the property covered by the easement. Defendants counterclaimed for costs expended in repairing the dam.

The trial court concluded that defendants had a valid easement across both the Orange County and Person County portions of plaintiffs’ property and awarded defendants $1650.00 with interest in compensation for repairs to the dam.

I.

N.C. Gen. Stat. § 47-27 provides that in order to be valid against a purchaser for valuable consideration, a deed of easement must be recorded in the county where the land affected is located:

All persons, firms, or corporations now owning or hereafter acquiring any deed or agreement for rights-of-way and easements of any character whatsoever shall record such deeds and agreements in the office of the register of deeds of the county where the land affected is situated.
No deed, agreement for right-of-way, or easement, of any character shall be valid as against any creditor or purchaser for a valuable consideration but from the registration thereof within the county where the land affected thereby lies.

N.C. Gen. Stat. § 47-27 (1984). See also Patrick K. Hetrick & James B. McLaughlin, Jr., Webster’s Heal Estate Law in North Carolina § 369 (3d ed. 1988). Recordation in one county has “no effect beyond the borders of that county.” Allen v. Roanoke R.R. & Lumber Co., 171 N.C. 339, 341, 88 S.E. 492, 493 (1916). Therefore, where a property interest spans more than one county, it is only effective against other claimants in the counties in which it has been recorded. Because defendants’ easement was not duly recorded in Person County at the time plaintiffs recorded their deed there, the easement was not valid against plaintiffs in Person County. “If a conveyance is not recorded by a grantee, it is considered absolutely void with respect to purchasers for value or lien creditors of the same grantor who record their conveyances or docket their liens.” Webster’s Real Estate Law in North Carolina § 369.

[39]*39North Carolina is a “pure race” jurisdiction, in which the first to record an interest in land holds an interest superior to all other purchasers for value, regardless of actual or constructive notice as to other, unrecorded conveyances. “Where a grantor conveys the same property to two different purchasers, the first purchaser to record his deed wins the ‘race to the Register of Deeds’ Office’ and thereby defeats the other’s claim to the property, even if he has actual notice of the conveyance to the other purchaser.” Hill v. Pinelawn Memorial Park, Inc., 304 N.C. 159, 163, 282 S.E.2d 779, 782 (1981); Bourne v. Lay & Co., 264 N.C. 33, 140 S.E.2d 769 (1965). Since defendants failed to register their grant of easement in Person County before plaintiffs registered their deed there, plaintiffs won the “race to the courthouse,” and their interest supersedes the later-recorded interest claimed by defendants.

The trial court’s conclusion that defendants’ easement was valid in Person County was based on an erroneous belief that our law requires a purchaser for valuable consideration to be an “innocent purchaser.” The court reasoned that because there were references to the easement within plaintiffs’ chain of title, plaintiffs were on constructive notice as to its course through their Person County property. The court stated that buyers with constructive notice did not hold the status of innocent purchasers for valuable consideration. It concluded that therefore, even though defendants’ easement had not been recorded, it was valid against these plaintiffs.

North Carolina does not require that a purchaser for valuable consideration be an “innocent purchaser.” A “purchaser for value” or a “purchaser for valuable consideration” is defined by our case law simply as one who has paid a valuable consideration for the execution of an instrument of conveyance. Sansom v. Warren, 215 N.C. 432, 2 S.E.2d 459 (1939). Plaintiffs meet this definition and thus are purchasers for valuable consideration protected by § 47-27.

Constructive notice is relevant in determining priority of interests where duly recorded. Once an interest has been recorded, future claimants are considered to have notice of it and to take subject to it. Waldrop v. Town of Brevard, 233 N.C. 26, 62 S.E.2d 512 (1950); Yount v. Lowe, 288 N.C. 90, 215 S.E.2d 563 (1975). Because defendants’ easement was properly recorded in Orange County, plaintiffs had constructive notice of it over their Orange County property. We affirm the trial court’s conclusion that the [40]*40portion of defendants’ easement over the Orange County property is valid against plaintiffs.

As for the portion of -the easement over the Person County property, we reverse the trial court as a matter of law and remand for an order instituting plaintiffs’ requested injunctive relief and quieting title to the Person County property in favor of plaintiffs.

II.

Plaintiffs also contest the trial court’s finding that defendants’ easement ran over the dam that was breached, thus entitling defendants to $1650.00 for costs expended to repair the dam.

The trial court’s finding relied on its conclusion that defendants’ entire easement was valid.

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Rowe v. Walker
441 S.E.2d 156 (Court of Appeals of North Carolina, 1994)

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Bluebook (online)
441 S.E.2d 156, 114 N.C. App. 36, 1994 N.C. App. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rowe-v-walker-ncctapp-1994.