HAISFIELD V. LAPE
570 S.E.2d 794 (2002)
NATURE OF THE CASE: Lape (P) sued Haisfield (D) for entitlement to an earnest money
deposit and D countersued claiming that P could not convey marketable title and both parties
appealed a judgment in favor of P.
FACTS: D entered into a land sale contract with for the sale of 99 acres in Albemarle
County. This land was once part of a larger piece of land of 148 acres owned by P. P
conveyed approximately 48 acres to the 'Moseses.' D deposited $50,000 earnest money to be
held in escrow. The agreement also provided that if D defaulted the $50,000.00 could be kept
by P as liquidated damages in lieu of all other remedies provided at law or in equity. D
notified P that the chain of title contained a restrictive covenant that rendered title to
the property unmarketable. A line-of-sight easement was discovered by D just prior to
closing. It, was found in the 1994 deed conveying the land to the Moseses from P. It held
that until 2024 no building shall be built on property which may be visible from the main
residence located on the property conveyed by this deed. D gave P 60 days to cure the defect
created by the Moseses' line-of-sight easement. D asked for the $50,000 earnest money
deposit if the defect was not cured. P disagreed that the line-of-sight easement rendered
title unmarketable, and efforts between the parties to reach a settlement in the matter were
unsuccessful. P sued D claiming the $50,000 earnest money deposit plus interest as
liquidated damages for the breach. P filed a grounds of defense and counterclaims for
failure to deliver marketable title and asking the court to return to her the $50,000
earnest money deposit. The trial court held that the line-of-sight easement did not
materially or adversely affect the use of the property for residential purposes nor did it
render title unmarketable under the terms of the Purchase Agreement. P got the judgment but
the court refused to award attorney fees. Both P and D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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