Opinion ID: 1680654
Heading Depth: 1
Heading Rank: 4

Heading: Contract Language and Interpretation

Text: ¶ 13. Our law requires this Court to accept the plain meaning of a contract as the intent of the parties where no ambiguity exists. Ass'n of Trial Lawyers Assur. v. Tsai, 879 So.2d 1024, 1029 (Miss.2004); State Farm Mut. Auto. Ins. Co. v. Universal Underwriters Ins. Co., 797 So.2d 981, 986 (Miss.2001); I.P. Timberlands Operating Co. v. Denmiss Corp., 726 So.2d 96, 108 (Miss.1998); Phillips Petroleum Co. v. Stack, 231 So.2d 475, 482 (Miss.1969). Furthermore, [c]ontracts are solemn obligations and this Court is obligated to given them effect as written. I.P. Timberlands Operating Co., 726 So.2d at 108. In reviewing the relevant portion of the contract, it is abundantly clear that the Sellers were duty bound to render unto Ferrara a warranty deed. Anything less than that effectively resulted in Ferrara receiving less than what he bargained for under the terms of their agreement. Where the terms of a contract are without ambiguity, as in the instant case, the plain meaning of the terms speaks to the intent of the parties. Thus, we conclude that Ferrara intended to receive from the Sellers a warranty deed in exchange for adequate consideration, and upon detection of defects in title, Ferrara expected the Sellers to cure the defects within a reasonable period of time. Moreover, Ferrara in fact required a warranty deed because of the likelihood that financing or bonding of the anticipated multi-million dollar project could be impeded due to a defect in title. Proceeding with such a major project without a warranty deed would have been imprudent. ¶ 14. Ferrara argues that without an adjudication of heirship for Mr. J.W. Strong, there is no way to determine who his lawful heirs were. Hence, without an adjudication of heirship, Ferrara faced uncertainty as to the encumbrances of the realty. ¶ 15. In 1950 Cole R. Budd conveyed the subject property to Mr. and Mrs. J.W. Strong. We note that there was no indication from the deed as to what kind of estate was created, i.e., a tenancy by the entirety, joint tenancy or a tenancy in common. Further, the deed was without any reference to rights of survivorship or otherwise. To this end, we have held that in the absence of any survivorship provision, a joint tenancy will not be presumed. In re Baker, 760 So.2d 759, 762 (Miss.2000) (citing In re Isaacson, 508 So.2d 1131, 1134 (Miss.1987)). Therefore, we must conclude that the 1950 conveyance from Budd to Mr. and Mrs. J.W. Strong effectively created a tenancy in common with both husband and wife maintaining a one-half undivided interest in the realty. Further, as tenants in common, when Mr. Strong died intestate, his one-half undivided interest vested in his heirs at law, and Mrs. Strong maintained a one-half undivided interest plus whatever fractional interest she may have received as an heir of Mr. Strong. ¶ 16. At the time the contract between Ferrara and the Sellers was executed, Mrs. Strong was alive. Though she has subsequently died, Mrs. Strong's interest in the property at the time of her death was effectively vested in the Sellers via the quitclaim deed. Therefore, the title of the subject property is currently vested in the Sellers, subject to possible claims brought by any heirs at law of Mr. Strong who might have failed to convey their interests to the Sellers. ¶ 17. We have held that a contract to sell and convey real estate ordinarily requires a conveyance of the fee simple title which is free and clear of all liens and encumbrances, unless restricted by other provisions of the contract. Jones v. Hickson, 204 Miss. 373, 395, 37 So.2d 625, 629 (1948); Union & Planters Bank & Trust Co. v. Corley, 161 Miss. 282, 133 So. 232 (1931). A break in the chain of title renders the title to the realty unmarketable. K.F. Boackle, Mississippi Real Estate Contracts and Closings § 3-45, at 82 (2d ed.2000). ¶ 18. Beyond this general proposition, where a contract expressly provides that a seller render unto the buyer a warranty deed, nothing less can be given in satisfaction of the seller's contractual obligation. When the seller agrees to convey property by warranty deed, he warrants that the title conveyed is without defect, i.e., clear and marketable. The word `warrant' without restrictive words in a conveyance shall have the effect of embracing all five covenants known to the common law, to wit: seizin, power to sell, freedom from encumbrances, quiet enjoyment and warranty of title. Miss.Code Ann. § 89-1-33 (1999). Because the contract here action obligated the Sellers to render a warranty deed, they possessed an affirmative duty to render to Ferrara a fee simple title which was clear and marketable. Further, where a contract expressly provides a reasonable opportunity for the seller to cure discovered defects in title, the seller's failure to cure constitutes a material breach of the contract. Inasmuch as the Sellers failed to seek an adjudication of the heirship [4] of Mr. J.W. Strong and failed to reasonably cure the defect in title, the Sellers breached their contract with Ferrara.