Pepper & Bath v. Smith

Texas Supreme Court
Pepper & Bath v. Smith, 54 Tex. 115 (Tex. 1880)
1880 Tex. LEXIS 134
Moore

Pepper & Bath v. Smith

Opinion of the Court

Moore, Chief Justice.

It is unnecessary to inquire into the origin or character of appellees’ right to the lots in controversy in this case, for whether they are community property or separate estate of Mrs. Smith, the legal title to them, it cannot be denied, was at the institution of this suit in appellants. Unless, therefore, the evidence was sufficient to authorize the court to divest this legal title out of appellants, and vest it in appellees, or one or the other of them, if this had been asked, the judgment must be reversed.

The fact that parties may establish a homestead on property which they hold [by mere equitable title in no way tends to subordinate the legal title to their mere equitable right. But then homestead right is dependent upon their title, and must stand or fall with it. It is therefore immaterial that appellants were chargeable with notice that appellees were occupying the lots as a homestead at the date of the deed of trust under which appellants acquired their title, unless the trustee and cestui que trust were chargeable at the date of said deed with notice of appellees’ superior equitable right to the lots against Fleishel, in whom the legal title then stood. But *119such an inference is not warranted by the facts. Both Fleishel, the grantor in the deed, and appellee, B. K. Smith, on inquiry being made of them, positively averred that the property belonged to Fleisbel, which, under the authority of Ranney v. Miller, 51 Tex., 263, rendered inquiry of Mrs. Smith unnecessary; but if inquiry of her was necessary, she in effect made the same admission by her joinder in the deed of trust. Under these circumstances, to divest appellants of their legal title, acquired for a valuable consideration on the faith of these decía- '• rations and admissions, in favor of the parties making them, would work a gross and palpable fraud.

The judgment is reversed and the cause remanded.

Reversed and remanded.

, [Opinion delivered December 14, 1880.]

Reference

Full Case Name
Pepper and Bath v. B. K. Smith and Wife
Status
Published
Syllabus
1. Homestead—Equitable title.—The fact that parties establish a homestead on property which they hold by mere equitable title cannot subordinate, the legal title to their equitable right; the homestead right is dependent on their title, and must stand or fall with it. S. Homestead—Notice.—The purchaser under trust deed of the legal title to property, which, at the time the trust deed was executed, was occupied under equitable title by a third party as a homestead, acquires the superior title, unless the trustee and cestui que trust were chargeable, when the trust deed was executed, with notice of the superior equitable right of the occupant, as against the holder of the legal title. 3. Homestead —Estoppel.—The wife, who, with her husband, joins in a trust deed with one in whom the legal title is vested, conveying property then occupied by her under equitable right as a homestead, cannot assert her equitable title as against the purchaser at trust sale, who had no' notice of her equitable claim; by joining in the trust deed she admits in effect that the ownership, of the property is in the holder of the legal title.