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Property Keyed to Sprankling
Raub v. General Income Sponsors of Iowa, Inc.
Citation:
176 N.W.2d 216 (Iowa 1970)Facts
Plaintiff Jessie O. Raub sought to set aside a deed transferring her property to General Income Sponsors of Iowa, Inc. (General Income), who allegedly obtained it from her by fraud. She also wanted to declare invalid two mortgages placed on the property by Defendants First National Bank of Fort Dodge, Iowa and Manson State Bank of Manson, Iowa. Plaintiff was the unfortunate victim of gross fraud practiced upon her by the agents of General Income. On December 2, 1965, Plaintiff executed and delivered to General Income a warranty deed to her property, in return for $14,000 worth of company stocks that she never received. The warranty deed was recorded. Plaintiff remained in possession of the real estate as a tenant, paying $70 a month to General Income as rent. In 1966, Defendants took mortgages on this property from General Income, and the mortgages were promptly recorded. Defendants concedes that Plaintiff’s warranty deed of December 2, 1965, was obtained by fraud. However, Defendants asserts that they are nevertheless entitled to enforce the liens of their mortgages because they qualify as bona fide purchasers.
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Topic Resources
Topic Outline
The Land Sale Contract and Marketable Title