Heaton v. Heaton, 196 N.C. 475 (1929)

Jan. 9, 1929 · Supreme Court of North Carolina

196 N.C. 475

R. T. HEATON et al. v. L. L. HEATON et al.

(Filed 9 January, 1929.)

Mortgages — Registration and Indexing — Lien and Priority — Subsequent Purchasers.

The proper indexing of a mortgage upon lands is an essential part of its registration, and where the husband and wife make a mortgage on her lands which is only indexed by the register of deeds in the name of the husband, it is not good as against a subsequent purchaser for value by deed from the husband and wife that had been properly indexed and registered. 0. S., 3561.

Civil action, before Moore, J., at November Term, 1928, of CHEROKEE.

Mande K. Heaton was tbe owner of tbe land in controversy. On 19 January, 1924, Maude K. Heaton and ber husband, L. L. Heaton, executed and delivered a mortgage to tbe plaintiffs upon said land to secure a note in tbe sum of $1,000, executed by L. L. Heaton to tbe Bank of Murpby, wbicb said note bad been endorsed by plaintiffs as accommodation endorser. Tbe instrument was registered on 28 April, 1924, but was indexed and cross-indexed in tbe name of L. L. Heaton only. Tbe name of Maude K. Heaton, tbe owner of said property, did not appear in tbe index or cross-index. Thereafter, on 26 September, 1924, L. L. Heaton and Maude K. Heaton, bis wife, conveyed tbe land to tbe defendant, Mattie A. Taylor, for full consideration. Tbe deed to Mattie A. Taylor was duly recorded on 27 September, 1924. Tbe plaintiffs, having been compelled to pay tbe note, brought this suit against L. L. Heaton and bis wife, Maude K. Heaton, and Mattie A. Taylor for tbe purpose of selling tbe land and applying tbe proceeds to tbe payment of said note.

A jury trial having been waived, tbe trial jud^e, upon tbe foregoing facts, decreed that tbe plaintiffs bad no lien on said property, and that tbe defendant, Mattie A. Taylor, was the owner thereof, freed from tbe alleged claim of defendant.

D. L. Tillett and Moody & Moody for plaintiff.

D. Witherspoon for Mattie A. Taylor.

BeogdeN, J.

Tbe indexing and tbe cross-indexing of deeds, mortgages and deeds of trust is an essential part of tbe registration thereof. Therefore a deed, mortgage, or deed of trust not properly indexed and cross-indexed is not properly registered, and registration is necessary to defeat tbe rights of subsequent purchasers for value. N. C. Code 1927, sec. 3561, requires that “the naines of the parties to all liens, etc.,” shall be shown on the index. The indexing of the instrument in controversy did not comply with the statute; hence the ruling of the trial judge was correct. Clement v. Harrison, 193 N. C., 825, 138 S. E., 308.

Affirmed.