Page:North Dakota Reports (vol. 48).pdf/617

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MERCHANTS’ STATE BANK v. STREEPER
593

is usually held insufficient to overcome the certificate. N. W. Loan & Panking Co. v. Johnson (S. D.) 79 N. W. 840.

John J. Coyle and T. M. Koegan, for respondent.

“The grantor in a deed, absolute on its face, but delivered with the oral understanding that it was to be held as security for a debt, has no title or interest to convey which will give his subsequent grantee any standing as against a purchaser from the grantee under the former deed without notice of the oral defeasance.” Grigsby v. Verch, 34 S. D. 39; Mintz v. Soule, Mich. L. R. A. 1916B, 397 and annotations.

“At common law, in the absence of statute, any permanent improvement placed upon the land of another, by one having no interest or title therein, without the owner’s consent, prima facie becomes a part of the realty and belongs to the owner.”’ See 22 Cyc. p. 7, and cases cited under note 9.

“As a general rule, if the occupant has notice or knowledge of an adverse title or claim in another he is not a possessor in good faith and cannot recover compensation for improvements made thereafter, although he in good faith believes his own title to be the better in point of law.” See 22 Cyc. p. 18 and cases cited under note 85; Wood v. Con- rad, (S. D.) 50 N. W. 95; West v. Middlesex Bk. Co. (S. D.) 146 N. W. 598; See McKenzie v. Gussner, 22 N. D. 445.

Christianson, J. Plaintiff brought this action to determine adverse claims to 160 acres of land situated in Mountrail county, in this state, and to recover from the defendants the value of the use and occupation of said premises during the years 1914, 1915, 1916, 1917, 1918, and Ig19. Plaintiff acquired title to said tract of land under the laws of the United States of America relating to homesteads. Patent therefor was issued to the plaintiff by the United States government on May 23, 1906. Subsequently the plaintiff gave several mortgages on the land. One of the mortgages was foreclosed, and certificate of sale issued to the Citizens’ State Bank of Stanley on July 8, 1911. Prior thereto, namely, on February I5, 1910, the plaintiff had conveyed the premises to the Citizens’ State Bank of Stanley by warranty deed. On July 8, 1912, the last day provided for making redemption, the Citizens’ State Bank of Stanley made redemption from the foreclosure by serving and filing the required notice, and making payment of the required amount, and the sheriff of