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Bankruptcy Keyed to Bussel, 12th Ed.
McCannon v. Marston
Citation:
679 F.2d 13 (1982)Facts
In 1973, Miriam McCannon entered into an agreement with a partnership doing business as The Drake Hotel for the purchase of a condominium apartment. She paid a $500 deposit toward the $17,988 purchase price and began residing in the apartment in April 1975. Although the contingency that the hotel be declared a valid condominium was satisfied in 1973, settlement never took place for various reasons. McCannon never recorded her agreement for sale. In November 1979, the debtor filed a Chapter 11 bankruptcy petition. McCannon filed a complaint in February 1981 seeking relief from the automatic stay and requesting specific performance of the purchase agreement. Under Pennsylvania law, McCannon had acquired an equitable interest in the property, and her possession would normally constitute constructive notice to subsequent purchasers of her rights.
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