Downs v. Ziegler
Court of Appeals of Arizona
477 P.2d 261 (1970)
Claude and Mary Downs (plaintiffs) conveyed land to Ziegler (defendant) in exchange for a mortgage on the land. Ziegler was having trouble paying the mortgage, so he entered into an agreement with three doctors (defendants), under which Ziegler conveyed his interest to the doctors in exchange for the doctors making all payments due on the land. The agreement stated the transaction was not a loan and all parties agreed it was a sale and conveyance of real property. The agreement also contained a clause allowing Ziegler to repurchase the property within a year by repaying the doctors in full plus $10,000. The doctors did not inspect the property prior to signing the agreement. The Downses filed suit to foreclose on the property and to hold the doctors liable for any deficiency after the foreclosure sale. The doctors argued their transaction with Ziegler was a mortgage, rendering them not personally liable to the Downses. The trial court found in favor of the doctors. The Downses appealed.
Rule of Law
Holding and Reasoning (Haire, J.)
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