Opinion ID: 573910
Heading Depth: 2
Heading Rank: 3

Heading: Improvements to the Property

Text: 27 Appellants assert that the district court erred in granting Chisholm's motion for summary judgment on Appellants' counterclaim for the value of improvements to the Property. Texas law provides that improvements are encumbered to the same extent as the property. See Pine v. Gibraltar Sav. Assoc., 519 S.W.2d 238, 242 (Tex.Civ.App.--Houston [1st Dist.] 1974, writ ref'd n.r.e.) (citation omitted). The Chisholm Liens expressly encumber[ed] not only the property but all further improvements to the property. 11 28 In an effort to escape with the value of their improvements to the Property when Chisholm enforces its liens, Appellants rely on the good faith improver principle. Under Texas law, a purchaser who makes improvements upon property in the good faith belief that it has good title to the property is entitled to compensation for the improvements. See Sharp v. Stacy, 535 S.W.2d 345, 351 (Tex.1976). An improper must show that the improvements were made without actual or constructive notice of another party's superior rights in the property. Constructive knowledge of superior claims destroys a claim for improvements under the good faith improver theory. Miller v. Gasaway, 514 S.W.2d 90, 93 (Tex.Civ.App.--Texarkana 1974, no writ); see Blanar v. Blanar, 598 S.W.2d 381, 383 (Tex.Civ.App.--Houston [14th Dist.] 1980, writ ref'd). 29 Appellants argue that a genuine issue of material fact, whether they built homes on the property and landscaped the property in the good faith belief that the only liens on the property were the liens of their lenders, precluded the district court's entry of summary judgment. Whether the Appellants constitute good faith purchasers entitled to the value of improvements to the Property upon foreclosure constitutes a question of law properly resolvable by the district court. 12 Appellants had constructive notice of Chisholm's superior claims--a simple check of the deed records would have revealed the Chisholm Liens. The Appellants do not have the requisite good faith to qualify as good faith improvers under Texas law. We affirm the district court's grant of summary judgment in favor of Chisholm on Appellants' counterclaim for the value of improvements because Appellants' improvements are subject to the Chisholm Lien and Appellants do not qualify as good faith purchasers.