City of Durham v. Pollard

WiNBORNE, J. Tbe question for decision is tbis : Where S. M. Credle, tbe grantee of land under an unregistered deed, conveys tbe same to Gregory Sales Company, for' valuable consideration, by deed which is duly registered, is a judgment, thereafter obtained by tbe Merchants *752 Bank against S. M. Oredle and docketed in the county where the land lies before the deed to Oredle is registered, a lien upon the land? The answer is “No.” A docketed judgment, directing the payment of money, is a lien on the real property situated in the county in which the judgment is docketed and owned by the judgment debtor at the time the judgment is docketed, or on such land as is acquired by him at any time within ten years from the date of the rendition of the judgment. However, “it is not a lien on land which has been conveyed by the judgment debtor by deed, duly registered prior to the docketing of the judgment.” C. S., 614. Helsabeck v. Vass, 196 N. C., 603, 146 S. E., 576. Furthermore, the Connor Act, Laws 1885, chapter 147, now O. S., 3309, provides that “no conveyance of land, or contract to convey, or lease of land for more than three years shall be valid to pass any property, as against creditors or purchasers for a valuable consideration, from the donor, bargainor or lessor, but from the registration thereof within the county where the land lies . . .” However, an unregistered deed conveys title from date of its delivery as against the grantor and all others except creditors of and purchasers for value from the grantor, donor or lessor. Warren v. Williford, 148 N. C., 474, 62 S. E., 697; Bank v. Mitchell, 203 N. C., 339, 166 S. E., 69, and cases there cited. Hence, the Connor Act protects only creditors of the grantor, bar-gainor, or lessor, and purchasers for value, against an unregistered conveyance of land, contract to convey, or lease of land for more than three years. Gosney v. McCullers, 202 N. C., 326, 162 S. E., 746, and cases cited. This means that where the owner of land conveys the same by deed, or contracts to convey it, or leases it for more than three years, such deed, contract or lease, until registered in the county where the land lies is invalid only as against his creditors and any who purchase for value from him. In the present case the judgment is not against Patton and Cole, the grantors, in the deed to Credle Avhich was unregistered on the first of June, 1931, the date on which the judgment against Credle was docketed. More than five years prior thereto and for valuable consideration Credle had conveyed the land to Gregory Sales Company by a deed which was registered on 25 June, 1926. Applying the principles above set forth, that deed conveyed the title from the date of its delivery as against Credle and all others except his creditors and purchasers for value from him. However, under the provisions of the Connor Act it became valid upon registration, even as against his creditors and purchasers for value from him. *753 Tbe case of Glass v. Shoe Co., 212 N. C., 70, 192 S. E., 899, and others relied upon by appellant, are distinguishable in factual situations from the case at bar. Judgment of the court below is Affirmed.