Cannefax v. Clement

818 P.2d 546 (1991)

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Nature of the Case

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Facts

George and Lila Barker contracted to sell certain real property which they owned in fee simple to Diane Hodge. Hodge recorded notice of that contract on August 31, 1981. Ds obtained and docketed a judgment against the Barkers in August 1985. On September 25, 1985, Hodge paid the amount remaining on the contract, and the Barkers executed a deed to the property to her. On the same date, Hodge gave a warranty deed to the property to Ps. Both transactions took place at a single real estate closing. Ps recorded their deed the next day. Following the closing but before P recorded their deed, the settlement agent, Surety Title Agency, conducted a title search which disclosed Ds' judgment against the Barkers. Two years later, Ds sought to enforce the judgment lien against the property through an execution sale scheduled for September 22, 1987. Ps brought this action to quiet title. The trial court granted summary judgment in favor of D, holding that the judgment created a lien on the property in the amount of $54,464.94, the unpaid amount on the contract on September 25, 1985, the closing date, less the amount of prior encumbrances. The court of appeals reversed and ordered the trial court to enter summary judgment in favor of Ps, quieting title to their property. Ds appealed.