McCoy v. Love

Supreme Court of Florida · 1979 · Property
382 So. 2d 647 (1979)
Updated
Propertydeedsfraudvoid vs voidabledeliverybona fide purchaserlegal titlefraud in the inducement

Facts

Mary V. Nowling Elliott, an elderly woman who could neither read nor write, orally agreed to sell Russell two mineral acres for $3,300, but Russell prepared a deed conveying a one-fifth interest in all minerals under a seventy-five acre tract. Elliott signed and delivered the deed after her daughter looked at it but did not understand it. Russell later said he had made a mistake, offered to pay more for the larger interest, and then purported to reconvey part of the interest, but before that reconveyance he had already conveyed a substantial portion to McClelland, whose successors were the respondents. After a later title search revealed those transactions, Elliott sued to cancel the deed, and the trial court held the deed void for fraud and lack of lawful delivery.

Issue

When a grantor knowingly signs and delivers a deed, but the grantee has fraudulently inserted terms conveying more than the grantor intended, is the deed void for lack of delivery or merely voidable in equity? Relatedly, may later purchasers claim bona fide purchaser protection if the deed conveyed legal title?

Rule

Delivery is essential to a valid deed, and without delivery nothing passes. But where all essential legal requisites of a deed, including execution and delivery, are present, the deed conveys legal title; fraud in the inducement makes such a deed voidable in equity, not void. The rule that a deed procured by fraud is void is limited to cases in which the fraud in execution amounts to a complete failure of delivery, such as wrongful acquisition of an escrowed undelivered deed.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.
In Ocala, Rosa Mendez agreed to sell Devin Pike a small easement strip behind her house. Devin instead drafted a warranty deed conveying Rosa's entire vacant lot next door, and Rosa knowingly signed and handed over the deed at closing, believing it matched their oral agreement.

Under the governing rule, what is the strongest characterization of the deed?

Explanation. The majority rule is that when all essential legal requisites of a deed are present, including execution and delivery, the deed conveys legal title even if the grantee procured it by fraud as to its contents or effect. That kind of fraud makes the deed voidable in equity, not void. Void treatment is limited to situations involving a complete failure of delivery.