Zapata v. Torres

464 S.W.2d 926, 1971 Tex. App. LEXIS 2574
CourtCourt of Appeals of Texas
DecidedFebruary 26, 1971
Docket17582
StatusPublished
Cited by12 cases

This text of 464 S.W.2d 926 (Zapata v. Torres) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zapata v. Torres, 464 S.W.2d 926, 1971 Tex. App. LEXIS 2574 (Tex. Ct. App. 1971).

Opinion

GUITTARD, Justice.

This suit was filed by Salvador Torres as executor and devisee dnder the will of Angel Garcia to cancel a deed executed by Garcia in favor of M. C. Zapata and Jerry Ray Zapata. The facts are undisputed and are stated in the pleadings.

On May 15, 1962, Garcia executed the deed in question conveying a house and lot to the Zapatas. The consideration recited is ten dollars paid and the assumption and agreement by grantees to pay “as same shall become due and payable” one certain promissory note of the same date in the principal sum of $4,100 executed by Garcia and payable to Oak Cliff Bank & Trust Company on or before six months after date. No express vendor’s lien is reserved, and printed language reserving a vendor’s lien has been stricken out, but there is a recitation that Garcia’s note to the bank is secured by a deed of trust to J. Willard Gragg, trustee. The deed also reserves to Garcia a life estate.

On July 29, 1962, several months before the note became due, Garcia paid it in full. The record does not show the circumstances of this payment or shed any light on Garcia’s reasons for making this payment. Garcia continued to occupy the property until his death in May, 1969. Torres, who had been living with Garcia, is Garcia’s executor and sole beneficiary in his will. When the Zapatas sought to obtain possession by forcible detainer proceedings, Torres filed this suit in the district court to cancel the deed. The Zapatas counterclaimed for title and possession. Both parties moved for summary judgment on the pleadings. The trial court sustained Torres’ motion and rendered judgment canceling the deed. The Zapatas appeal.

By their first point the Zapatas contend that the trial court erred in rendering summary judgment canceling the deed because cancellation is not the proper remedy for enforcement of a purchase-money obligation. This point is sustained.

It has long been established by Texas decisions that where a vendor reserves in his deed an express vendor’s lien to secure unpaid purchase money, the contract is executory for some purposes, and superior title remains in the vendor until the purchase money is paid. On the purchaser’s default, the vendor has his choice of a variety of remedies. He may sue for his money and to foreclose the lien, or he may rescind the contract and resume possession, or he may recover title and possession in a suit brought for that purpose. Whiteside v. Bell, 162 Tex. 411, 347 S.W.2d 568 (1961); Johnson v. Smith, 115 Tex. 193, 280 S.W. 158 (1926); 58 Tex.Jur.2d, § 261, p. 483 et seq.; 59 Tex.Jur.2d, § 490, p. 39. Where the purchase money is not paid, but no express lien is reserved in the deed, the vendor has an implied equitable lien which may be established and foreclosed in a suit brought for that purpose. Briscoe v. Bronaugh, 1 Tex. 326 (1846); White v. Downs, 40 Tex. 225, 226 (1874); 58 Tex.Jur.2d § 335, p. 575 et seq. Such an equitable lien may arise from the purchaser’s assumption of the vendor’s indebtedness to a third party. Gonzalez v. Zachry, 84 S.W.2d 855 (Tex.Civ.App., San Antonio 1935, writ ref’d); Hable v. Owens, 287 S.W. 155 (Tex.Civ.App., Eastland 1926, no writ). However, the holder of such an equitable lien has no superior title, and has no right to rescind the sale and recover the land, since the deed passes full title and the transaction can no longer be *929 considered executory. Ransom v. Brown, 63 Tex. 188, 189 (1885); White v. Downs, 40 Tex. 225, 226 (1874); Huddle v. Cleveland, 297 S.W.2d 737 (Tex.Civ.App., San Antonio 1957, writ ref’d n.r.e.); 58 Tex. Jur.2d, § 261, p. 483 ; 59 Tex.Jur.2d, § 490, p. 38. Moreover, assumption by the purchaser of the vendor’s indebtedness to a third party does not invoke the superior title doctrine, and even if such indebtedness is secured by an express lien created in some other contract, and the vendor is required to pay the indebtedness on the purchaser’s default, the vendor has no right to rescind, nor is he subrogated to the superi- or title of a previous vendor, but he is limited to recovery of the amount paid and foreclosure of his lien. Rhiddlehoover v. Boren, 260 S.W.2d 431 (Tex.Civ.App., Texarkana 1953, no writ).

Assuming that Garcia had an equitable vendor’s lien upon his payment of the note to the bank (though we do not so hold for reasons to be discussed later), it is clear under the above authorities that his remedy was an action for recovery of the amount he had paid and to establish and foreclose such lien, rather than action to cancel the deed, and Torres, as his successor, has no greater rights.

Torres seeks to uphold the summary judgment in his favor on the alternative ground that the provision of the deed by which the Zapatas assumed Garcia’s note to the bank is “couched in language making it a condition subsequent,” and that the Zapatas’ failure to pay the note was a breach of such condition, which gave Torres as Garcia’s successor the right to recover the land. The only authorities he cites are cases holding that in determining whether a provision in a deed amounts to a condition precedent or a condition subsequent, the intention of the parties is controlling, and if there is doubt as to whether the condition is precedent or subsequent, such a provision will be construed as a condition subsequent. City of Dallas v. Etheridge, 152 Tex. 9, 253 S.W.2d 640 (1953); Hudson v. Caffey, 179 S.W.2d 1017 (Tex.Civ.App., Texarkana 1944, writ ref’d). Here we have a different question. We must decide whether the Zapatas’ agreement to pay the note was a condition affecting the estate conveyed or a covenant for breach of which only an action for damages will lie. Since forfeiture of an estate for breach of a condition subsequent is not favored by the courts, a promise of the grantee will be construed as a covenant rather than as a condition unless a conditional estate is clearly and unequivocally revealed by the language of the instrument, and recitation of the grantee’s promise as consideration for the conveyance does not in itself indicate an intention to convey a conditional estate. Sirtex Oil Industries, Inc. v. Erigan, 403 S.W.2d 784 (Tex.Sup.1966); Hearne v. Bradshaw, 158 Tex. 453, 312 S.W.2d 948 (1958); Chicago, T. & M. C. Ry. Co. v. Titterington, 84 Tex. 218, 19 S.W. 472 (1892).

Here the Zapatas’ agreement to assume the note is not “couched in language making it a condition subsequent,” since it contains no language reserving to Garcia the right to terminate the estate for failure of the Zapatas to pay Garcia’s note to the bank, or any other indication of an intention to convey a conditional estate. We hold that such agreement was a covenant rather than a condition and that the only remedy for its breach is an action for damages.

By their second point the Zapatas contend that the trial court erred in overruling their motion for summary judgment and in failing to award them title and possession of the property on their counterclaim. This point also is sustained.

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Bluebook (online)
464 S.W.2d 926, 1971 Tex. App. LEXIS 2574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zapata-v-torres-texapp-1971.