Williamson v. Wilson

52 P.2d 138, 56 Idaho 198, 1935 Ida. LEXIS 55
Idaho Supreme Court·Decided December 2, 1935·No. No. 6112.·Published·Cited by 13 cases

Opinion

*201 AILSHIE, J.

This was an action to recover possession of real property. A cross-complaint was interposed praying for the return of the money paid as part of the purchase price for this land and for taxes paid, and for the value of repairs made on the premises. Judgment was entered for the plaintiff for the recovery of the possession of the land, together with nominal damages, and defendant has appealed. The case arose out of the following state of facts:

Plaintiff and his wife owned a farm in Idaho which was community property. They were residing in California. Plaintiff, learning of a prospective purchaser, came to Idaho, negotiated an agreement with a man named Farmer for the sale to him of this farm for $12,500. A warranty deed was prepared and taken by plaintiff back to California, where he and his wife duly executed and acknowledged it. In the meanwhile some of the buildings on the place were destroyed by fire. Plaintiff brought the deed, which had been duly executed, back to Idaho and after further negotiating with Farmer it was agreed that the sale should be consummated and that plaintiff should reduce the purchase price as originally agreed upon in the sum of $1,000, which was assented to by plaintiff’s wife. Plaintiff and Farmer thereupon went to the bank where on November 1, 1917, a contract of sale was drawn in the usual and ordinary form, whereby plaintiff contracted to sell to Farmer and execute and deliver good and sufficient warranty deed, together with abstract of title and a certificate of water stock, which represented the water right appurtenant to the premises. By the same instrument Farmer agreed to purchase the premises and to make payments for the purchase price, by $200 in cash and the balance *202 in installments extending over a period of eleven years. Farmer executed promissory notes representing these deferred payments, which notes bear interest at the rate of 7 per cent until due and 8 per cent after maturity. The contract, the deeds and notes, abstract and water stock certificate, were all placed in escrow with the Middleton State Bank, with instructions that if the notes were paid they should be surrendered and the money placed to the credit of the vendor at the bank; and that when final payment was made, the deeds, abstract and water stock certificate should be delivered to Farmer.

The contract provided that the terms and conditions thereof “shall extend to and be obligatory upon the heirs, executors, administrators or assigns of the respective parties” and also contained the following:

“And in case of the failure of said party of the second part to make either of the payments or interests thereon or any part thereof, or to perform any of the covenants on his part hereby made and entered into then the whole of said payments and interests shall become immediately due and payable, and this contract shall, at the option of the party of the first part, be forfeited and determined, and if this instrument shall have been recorded in any recorder’s office, then of filing a declaration of forfeiture, (setting forth the fact of said failure), in said office by said first party shall be sufficient to cancel all obligations hereunto on the part of the first party and fully reinvest them with all rights, title and interest, hereby agreed to be conveyed and the party of the second part shall forfeit all payments on and made by him on this contract, and all his rights, title and interest in all buildings, fences, or other improvements whatsoever and such payments and improvements shall be retained by the said party of the first part and he shall have the right to reenter and take possession of the premises aforesaid.”

On October 15, 1919, Farmer sold and assigned his interest to Walter M. Ode and wife and executed and acknowledged a warranty deed on December 9, 1919, for the same premises and placed that in escrow with the other escrow papers. On May 12, 1920, Ode sold and assigned his interest to James T. *203 Wilson (husband, of the defendant herein); and on May 6, 1920, Ode and wife executed warranty deed to the same premises and placed the same in escrow with the other escrow papers. On July 4, 1931, Wilson assigned his interest to the defendant herein and executed a deed to the premises and placed the same in escrow with the other escrow papers. Defendant defaulted in the payment of principal, interest and taxes on November 1, 1928, and made no payments thereafter. On the 21st day of April, 1932, plaintiff caused to be served on defendant, also on Farmer and wife and Ode and wife, a written notice describing the premises and specifying the payments that were in default, also the interest and taxes and recited:

“You are hereby further notified that, on account of your failure to pay the sums hereinabove specified as payments upon the purchase price and interest, you are in default under the terms of said contract and you are hereby given thirty (30) days within which to pay said sums and in case said sums are not paid within thirty (30) days from the date of the service of this notice said contract, dated November 1, 1917, for the purchase of the lands hereinbefore described, will be forfeited and all moneys heretofore paid the party of the first part on said contract will be forfeited to the said H. H. Williamson as liquidated damages and as rental for the use and occupation of said premises as provided by the terms of said contract.”

No payment was made after this notice and the present action was thereafter instituted.

Appellant contends that the contract for sale of the land made by the husband alone (on Nov. 1, 1917) after the execution of the deeds and after the agreement had been reached, for a reduction of $1,000 from the purchase price, on account of the loss of buildings by fire, was void, by reason of the fact that community property cannot be sold, conveyed or encumbered by the husband “unless the wife join with him in executing and acknowledging the deed or other instrument of conveyance, by which the real estate is sold, conveyed or encumbered.” (Sec. 31-913, I. C. A.; Childs v. *204 Reed, 34 Ida. 450, 202 Pac. 685; McKinney v. Merritt, 35 Ida. 600, 208 Pac. 244; Hart v. Turner, 39 Ida. 50, 226 Pac. 282; Elliott v. Craig, 45 Ida. 15, 260 Pac. 433; Burnham v. Henderson, 47 Ida. 687, 278 Pac. 221.)

This contention would be sound if the transaction were dependent on the contract of sale and purchase, executed. November 1, 1917. However, such is not the ease. It is in-' disputable that the deeds were both “executed and acknowledged” in the manner required by the ■ community property statute and were placed in escrow with, the contract for sale and the abstract and water stock certificate. Oral escrow instructions were given the bank with reference to their delivery. In other words,- the covenant in the contract for execution of a good and sufficient deed was performed and complied with at the time by both husband and wife. The deeds were executed and by the mutual agreement of the parties those identical deeds were deposited in escrow.

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Williamson v. Wilson, 52 P.2d 138, 56 Idaho 198, 1935 Ida. LEXIS 55 (Idaho 1935).

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