Moore v. Central Nat. Bank & Trust Co.

• Decision Date: 18 March 1930
• Docket Number: 40252
• Citation: Moore v. Central Nat. Bank & Trust Co., 210 Iowa 1020, 229 N.W. 666 (Iowa 1930)
• Parties: LILLIAN M. MOORE, Appellee, v. CENTRAL NATIONAL BANK & TRUST COMPANY, Appellee; E. J. MORRIS, Appellant
• Court: Iowa Supreme Court

229 N.W. 666

210 Iowa 1020

LILLIAN M. MOORE, Appellee, v. CENTRAL NATIONAL BANK & TRUST COMPANY, Appellee; E. J. MORRIS, Appellant

No. 40252

Supreme Court of Iowa, Des Moines

March 18, 1930

REHEARING DENIED SEPTEMBER 23, 1930.

Appeal from Polk District Court.--FRANK S. SHANKLAND, Judge.

Suit in equity, involving the question of the liability between the seller and the buyer of real estate as to certain taxes. The district court held against defendant's contention, and entered judgment in favor of the plaintiff for costs. The defendant E. J. Morris appeals.

Reversed.

Thomas J. Bray, for appellant.

F. G Ryan, for Lillian M. Moore, appellee.

I. L Wright, for Central National Bank & Trust Company, appellee.

ALBERT, J. MORLING, C. J., and STEVENS, DE GRAFF, and WAGNER, JJ., concur.

OPINION

ALBERT, J.

The real estate in controversy belonged to the heirs at law of J. G. Bunz, and consisted of a 290-acre farm, situated in Polk County, Iowa. This land was sold at public auction on December 11, 1928, and was purchased by one Hollingsworth, who subsequently transferred all of his rights to E. J. Morris. At the time and place of sale, a written notice of the terms thereof was posted, which notice, among other things, provided:

"Ten per cent of the purchase price shall be made on the day of the sale, and the balance to be paid upon the closing of the estate of J. G. Bunz, about February 25, 1929, and delivery of abstract of title, showing merchantable title in the heirs of J. G. Bunz, free of all incumbrances to day of sale, possession to be given March 1, 1929."

At the sale on said date, the auctioneer, prior to receiving bids on said land, read, or orally announced, the terms of the above notice to the assembled buyers. At the time of said sale, a deed had been signed by all of these heirs, bearing date December 11, 1928, with the grantee's name in blank, and deposited with the bank. When the time came for the closing of this transaction, about March 7, 1929, a question arose as to the liability for taxes on this property, amounting to something over $ 700, and a stipulation was entered into, providing that from the purchase price $ 900 should be taken and held by the Central National Bank, pending a final legal determination of who should pay the general taxes on this land, due December 31, 1928. The deed was passed, the balance of the purchase price paid, and the defendant Morris took possession of the property.

The single question before us, therefore, is: Should the Bunz heirs pay these taxes, or should they be paid by the purchaser, E. J. Morris? This question seems not to be an open one in this state. In the absence of any contract, the statute, Section 7204, Code, 1927, provides:

"As against a purchaser, such liens [for taxes] shall attach to real estate on and after the thirty-first day of December in each year."

It is apparent, therefore, under this section of the statute,--in the absence of a contract to the contrary,--that the Bunz heirs would be liable for these taxes. The question is, therefore, further narrowed to the naked proposition as to whether or not there is anything in the contract covering the question of taxes.

In the case of Clinton v. Shugart, 126 Iowa 179, 101 N.W 785, there was a written contract entered...