Opinion ID: 891677
Heading Depth: 5
Heading Rank: 1

Heading: The City Failed to Present Evidence upon Which Reasonable Minds Could Differ as to the City's Open Possession of Parcel F.

Text: {28} The City argues that Cloudview had a duty to inquire about the nature and scope of the drainage easement on Parcel F because Cloudview's agent, Mr. Garcia, knew that the City had an easement over Parcel F, and Parcel F had remained open space despite having been surrounded by development for more than twenty years. In light of these facts, the City contends that Cloudview had a duty to investigate why the City was in open possession of Parcel F when Cloudview purchased the property. Cloudview argues that the City was not in open possession, citing Teofan v. Cools (In re Spring Creek Invs. of Dallas, N.V., Inc.), 71 B.R. 157, 159 (Bankr.N.D.Tex.1987) (possession, to act as . . . notice of adverse ownership, must be visible, open, notorious, and exclusive, and not merely constructive possession.). {29} Possession of land by one other than the owner of record can be sufficient to trigger a purchaser's duty to inquire further. See Hunt, 27 N.M. at 402, 201 P. at 1066 (A person who purchases an estate in the possession of someone other than the seller is bound to inquire of such possessor what right [the possessor] has in the estate. (internal quotation marks and citation omitted)). What acts may or may not constitute a possession are necessarily varied and depend to some extent upon the nature, locality, and use to which the property may be applied, the situation of the parties, and a variety of circumstances which have necessarily to be taken into consideration. Id. at 401-02, 201 P. at 1065 (internal quotation marks and citation omitted). {30} However, open possession of property creates no duty to investigate where all signs of possession can be attributed to and are consistent with ownership by the owner of record. See id. at 403, 201 P. at 1066 (holding that a subsequent purchaser did not have constructive notice of a third party's claimed interest because the third party's land use was not noticeably different than the use made prior to the third party's alleged acquisition); see also Teofan, 71 B.R. at 159 (Possession that could easily be referred to the person in whom stood the record title is not sufficient.). Where open possession can be attributed to the owner of record, [a]n investigator may certainly rely upon the truth of the recitals of a record, where they are specific. Smith & Ricker v. Hill Bros., 17 N.M. 415, 431, 134 P. 243, 247 (1913); see also Allison v. Curtis, 62 N.M. 387, 390, 310 P.2d 1042, 1044 (1957) (holding that innocent purchasers for value were entitled to rely on the property records). {31} Is the fact that Parcel F is undeveloped and surrounded by subdivided parcels inconsistent with ownership by Amrep? No. The lack of development on Parcel F, even when viewed in contrast to the surrounding development, fails to raise a reasonable inference that anyone other than Amrep, and subsequently the Mares group, made the decision to leave the parcel undeveloped, and it certainly does not constitute open possession by anyone other than the owner of record. Accordingly, we conclude that the City failed to present evidence upon which reasonable minds would differ as to the City's open possession of Parcel F.