MARTINEZ V. MARTINEZ
678 P.2d 1163 (1984)
NATURE OF THE CASE: D, buyers, sought review of the decision, which granted judgment for
P, sellers, in an action to recover title to and possession of the property.
FACTS: P sold land, under a real estate contract, to D. D agreed to assume the mortgage
on the property, which then amounted to $8,580.34. P, the parents of Carlos (D) handed over
to Ds a warranty deed. P orally instructed D to take the deed to the Southwest Savings and
Loan Association (Southwest), the mortgagee, to be held in escrow until the mortgage had
been paid in full. Instead, D recorded the deed. D made payments of $ 119 per month through
November 1980. They encountered marital difficulties. Carlos (D) informed Sennie (D) that he
no longer was going to pay any mortgage installments but that she would be solely
responsible for them. In December, 1980, a representative of the mortgage company informed
Sennie (D) of her obligations under the mortgage and told her that, if the mortgage remained
in default for ninety days, legal action would be taken to foreclose. D defaulted and P
cured the default and asserted that the property was to revert back to them. Carlos (D)
reconveyed but Sennie (D) refused. P sued to recover the property. The trial court ruled for
P from extrinsic evidence of the P's intent at the time the warranty deed exchanged hands
and found that they intended the deed to be held in escrow until the mortgage had been paid
in full.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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