Property Keyed to Saxer
Chase Federal Savings and Loan Association v. Schreiber
Theadores W. Ross (Plaintiff) conveyed property to Peter R. Cournoyer through a quitclaim deed. The deed stated that it was conveyed with love and affection as consideration. This deed was properly recorded. Cournoyer later sold the property to Luis and Gladys Perez for $50,000. The Perezes received a mortgage loan on the property from Chase Federal Savings and Loan Association (Defendant). Plaintiff sued to rescind and cancel her deed to Cournoyer on the grounds that a deed unsupported by valuable consideration is only valid if the grantor and grantee are related by blood or marriage. The trial court found that consideration was lacking but that the deed nevertheless passed legal title because the Perezes and Chase Federal lacked actual notice of any defect in the deed. The court of appeals, sittingen banc,reversed.
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