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Property Keyed to French
Buffalo Academy of the Sacred Heart v. Boehm Bros.
Facts
The Boehm Brothers (Defendant) received title to several lots in real estate to compensate for a debt owed to the Defendants by Buffalo Academy of the Sacred Heart (Plaintiff). As a precautionary measure, the Defendants stipulated in the contract for sale that if the title were unmarketable at closing then the Plaintiff would pay the Defendants the sum of $60,000. Plaintiff offered a deed, however the Defendants refused because they believed the title to be unmarketable. The Defendants belief of unmarketable title was supported by their opinion that the land was subjective to several restrictive covenants including that the land could only be used for residential buildings and that the land cannot be used for a gasoline station. They base their belief on deeds from the same grantor to other grantees who received a piece of land from the original large tract that was subdivided into smaller tracts of land. Plaintiffs brought suit to compel performance. The Trial Court determined the Plaintiff’s did not have marketable title because of a restrictive covenant and ruled in favor of the Defendants awarding them $60,000.
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