Opinion ID: 2631886
Heading Depth: 2
Heading Rank: 2

Heading: Priority in the Real Estate

Text: ¶ 23 This ruling does not inevitably lead to the conclusion that Deere has priority in the excess proceeds of the trustee's sale. Since the sale included all of the Tremonton realty (land, home, etc.), the resulting proceeds were attributable not only to the manufactured home, but to the land and anything else forming a part of the realty. Neither the district court nor Deere has explained how Deere's priority interest in the manufactured home permits Deere to claim indiscriminately first priority in the excess proceeds. The court's conclusion that Deere has priority in the proceeds, coming as it does in the absence of an agreement apportioning the proceeds between the home and the rest of the realty, implicitly assumes Deere obtained a priority interest in the realty as a whole when the home became a fixture. ¶ 24 Section 70A-9-313 does not, however, purport to give a person with a perfected security interest in a fixture an interest in the rest of the realty. In FGB Realty Advisors v. Bennett, 44 Conn.Supp. 156, 672 A.2d 545, 547-49 (1995), for example, the court held that under U.C.C. section 9-313, a perfected security interest in an in-ground swimming pool had priority over a mortgage on the real estate only as to this one fixture, not as to the realty as a whole. See also Capitol Fed. Sav. & Loan Assoc. v. Hoger, Kan.App.2d 1052, 880 P.2d 281, 283-84 (1994) (holding that under Kansas U.C.C. section 9-313, although fixture filing gave chattel financer priority interest in furnace and air conditioner that became fixtures, financer's interest did not extend beyond fixtures to rest of realty). Thus, Deere had an interest with respect to one fixture, the manufactured home. Only the trust beneficiary and Schriever, through her judgment lien, had an interest in the realty as a whole.