Real Property – Mortgage Agreement – Sale Prohibition – Equity Line – Deed Execution

Simpson v. Raymer (Lawyers Weekly No. 11-16-1262, 9 pp.) (Douglas McCullough, J.) Appealed from Cabarrus County Superior Court. (Theodore S. Royster, J.) N.C. App. Unpub. Click here for the full-text opinion.

Holding: The parties’ “Mortgage Agreement” provided, “Grantee may not sell or convey to another entity until full payment has been made to the grantor or grantor’s estate.” The plain and unambiguous meaning of the words “sell” or “convey” is the transfer of full ownership – as in both legal and equitable title – to a piece of property. Therefore, despite their temporary conveyance of legal title to Wachovia in exchange for an equity line, the plaintiff-grantees at all times retained equitable title to the property and cannot be said to have sold or conveyed the property based on the usual and ordinary meaning of those terms.

We affirm summary judgment for the grantees.

Even though the defendant-grantor signed a deed granting title to the grantees, she signed in the location designated for the notary. A person reviewing the deed would not consider the deed to be valid while lacking a signature on the designated grantor line. Clearly, the Cabarrus County Register of Deeds did not consider the deed to be valid because it included a notation on the bottom of the file-stamped deed that “NOTARY NOT CERTIFIED DUE TO NO GRANTOR SIGNATURE 4-4-2005.” Thus, the deed would not be valid against purchasers for value. Therefore, the initial deed was invalid due to the grantor signing in the incorrect place; as a result, the grantor must deliver a full and sufficient warranty deed to the grantees.