St. Luke's Episcopal Church v. Berry

163 S.E.2d 664, 2 N.C. App. 617, 1968 N.C. App. LEXIS 984
CourtCourt of Appeals of North Carolina
DecidedOctober 23, 1968
Docket6814SC332
StatusPublished
Cited by6 cases

This text of 163 S.E.2d 664 (St. Luke's Episcopal Church v. Berry) 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
St. Luke's Episcopal Church v. Berry, 163 S.E.2d 664, 2 N.C. App. 617, 1968 N.C. App. LEXIS 984 (N.C. Ct. App. 1968).

Opinions

[620]*620Parker, J.

No restrictive covenants appear in any deed in the direct line of plaintiff’s chain of title, and the question presented by this appeal is whether plaintiff’s lots are nevertheless bound by restrictive covenants contained in deeds previously given by plaintiff’s grantors conveying other lots to other grantees. The question posed is of importance to all concerned with land titles in our State (see: Webster, The Quest for Clear Land Titles; The Burden of Searching the Record for Instruments Outside the Vendor’s Chain of Title, 46 N.C.L. Rev. 296), as well as in other jurisdictions (see: Ryckman, Notice and the “Deeds Out” Problem, 64 Michigan Law Rev. 421; Annotations, 16 A.L.R. 1013; 60 A.L.R. 1216; 144 A.L.R. 916; 4 A.L.R. 2d 1364). On the one hand concern must be given to the rights of those who, as did each of the appealing defendants in this case, invest their funds in homes on lots in a subdivision acquired under deeds expressly imposing restrictions, such persons having a legitimate interest in knowing that all other lots in the subdivision are similarly restricted. On the other hand concern must be given to the problem of maintaining marketable land titles, so that real property throughout the State can be traded readily and without the burden of unnecessarily tedious and excessively expensive title searches. The correct balancing of these sometimes countervailing concerns is not always easy.

Prior to the decision in the case of Reed v. Elmore, 246 N.C. 221, 98 S.E. 2d 360, decided in 1957, the law appeared to be settled that the purchaser of land in North Carolina was chargeable with notice of, and his lands were consequently affected by, a restrictive covenant only if such covenant was contained or referred to in a recorded deed or other instrument in his direct line of title. Such was the holding in the cases of Turner v. Glenn, 220 N.C. 620, 18 S.E. 2d 197, and Hege v. Sellers, 241 N.C. 240, 84 S.E. 2d 892.

In Turner v. Glenn, supra, decided in 1942, a realty development company had subdivided a tract of 214 acres into 596 lots in a subdivision known as Sunset Hills. A large number of lots were sold subject to restrictions. Plaintiff Turner acquired his lots by foreclosure of deeds of trust given by the development company. One of these deeds of trust and the deed in foreclosure thereof given to Turner contained the following: “The above described property is conveyed subject ... to the usual restrictions of the use and reservations placed by A. K. Moore Realty Company on property similarly situated in Sunset Hills.” The other deed of trust and deed to Turner contained the following: “Subject to customary restric[621]*621tions of the use and reservations reserved by A. K. Moore Realty Company in the conveyances of lots fronting Madison Avenue in Block 1, Section 1, Sunset Hills.” In a suit by Turner to remove a cloud on title to his lots the North Carolina Supreme Court held that he was entitled to a decree adjudging that his lots were clear of any restrictions. Barnhill, J. (later C.J.) speaking for the Court, said (p. 626):

“. . . No deed in the chain of title to either of the lots owned by plaintiff sets forth any particular restrictions or reservations and no reference is made to any other instrument of record which sufficiently discloses what are the ‘customary restrictions in conveyances of lots fronting Madison Avenue in Block 1, Section 1, Sunset Hills,’ or what are the ‘usual restrictions of the use and reservations placed by A. K. Moore Realty Company on property similarly situated in Sunset Hills.’ Notwithstanding the general provision in the deeds of the plaintiffs they took without notice of any restrictions or reservations such as would be binding on them.
“As stated, it is the duty of a purchaser of land to examine every recorded deed or instrument in his line of title and he is conclusively presumed to know the contents of such instruments and is put on notice of any fact or circumstance affecting his title which either of such instruments reasonably discloses. He is not, however, required to examine collateral conveyances of other property by any one of his predecessors in title.” (Emphasis added.)

In Hege v. Sellers, supra, decided in 1954, the owners subdivided a tract of land into 40 lots of approximately one acre each in a “high-class, highly restricted residential development,” known as Wooded Acres. Thirty-nine deeds were given, all of which contained, among other restrictions, provision that “(a) 11 lots contained in this property known as Wooded Acres shall be used for residential purposes only.” Thereafter a fortieth deed was given conveying lot #11 to the defendants. This last deed contained no restrictions. The plaintiffs, owners of lots in Wooded Acres under deeds which contained the uniform restrictions, brought suit to have defendants’ lot declared subject to the restrictions and to restrain defendants from violating them. Judgment of nonsuit was affirmed on appeal by unanimous decision of the Supreme Court. Higgins, J., speaking for the Court, said (p. 248):

“The remaining question is whether the defendants C. G. Sellers and wife in accepting a deed without restriction, never[622]*622theless were charged with such notice of the plans and purposes in the development of Wooded Acres as would make the uniform restrictions applicable to Lot No. 11. As has already been pointed out, no restrictions appear in the chain of title to that lot. No notice, therefore, can be found in the line of title. The recorded map shows no restrictions. ‘The law contemplates that a purchaser of land will examine each recorded deed or other instrument in his chain of title, and charges him with notice of every fact affecting his title which such examination would disclose. In consequence, a purchaser of land is chargeable with notice of a restrictive covenant by the record itself if such covenant is contained in any recorded deed or other instrument in his line of title, even though it does not appear in his immediate deed.’ Higdon v. Jaffa, 231 N.C. 242, 56 S.E. 2d 661; Sheets v. Dillon, 221 N.C. 426, 20 S.E. 2d 344; Turner v. Glenn, 220 N.C. 620, 18 S.E. 2d 197. Since the effective date of the Connor Act, 1 December, 1885, in matters involving the title to land it is intended that the public registry should be the source of notice. Since then it is considered not enough to send word by the mail boy. Notice, however full and formal, cannot take the place of registered documents. Austin v. Staten, 126 N.C. 783, 36 S.E. 338; Hinton v. Williams, 170 N.C. 115, 86 S.E. 994; Blacknall v. Hancock, 182 N.C. 369, 109 S.E. 72.

“ ‘If purchasers wish to acquire a right of way or other easement over the lands of their grantor, it is very easy to have it so declared in the deed of conveyance. It would be a dangerous invasion of rights of property, after many years and after the removal by death or otherwise of the original parties to the deed, and conditions have changed, to impose by implication upon the slippery memory of witnesses such burdens on land.’ Davis v. Robinson, supra; Milliken v. Denny, 141 N.C. 224, 53 S.E. 867. A building restriction is a negative easement and within the statute of frauds. It cannot be proved by parol. A verbal contract for a right of easement is void under the statute of frauds. Davis v. Robinson, supra.

“Restrictive covenants are not favored. As was said by this Court in Callaham v.

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St. Luke's Episcopal Church v. Berry
163 S.E.2d 664 (Court of Appeals of North Carolina, 1968)

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Bluebook (online)
163 S.E.2d 664, 2 N.C. App. 617, 1968 N.C. App. LEXIS 984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-lukes-episcopal-church-v-berry-ncctapp-1968.