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Martinez v. Martinez
New Mexico Supreme Court
678 P.2d 1163 (1984)
In February 1970, Delfino and Eleanor Martinez (sellers) (plaintiffs) sold their home to Carlos and Sennie Martinez (buyers) (defendants). Under the terms of the contract, the buyers assumed the sellers’ mortgage on the property. When the sellers delivered the deed to the buyers, they orally instructed the buyers to forward the deed to the mortgagee, Southwest Savings and Loan Association (Southwest). Southwest was to hold the deed in escrow until the buyers paid the mortgage in full. In 1980, the buyers defaulted on the mortgage payments. The sellers cured the default and asserted that, under the terms of the contract, the property was to revert back to them because of the default. Carlos reconveyed his interest in the property, but Sennie did not. The sellers brought suit to recover title. The trial court held that transfer of title to the buyers had been conditioned upon full satisfaction of the mortgage and found in favor of the sellers.
Rule of Law
Holding and Reasoning (Walters, J.)
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