Opinion ID: 1219556
Heading Depth: 1
Heading Rank: 3

Heading: the disputed 6-acre tract

Text: Malnar assigns as error the court's finding that she intended to convey the 6-acre tract of land to Elder at the time of closing. This finding is reviewed under the clearly erroneous standard. On the day of closing, December 19, 1980, four separate documents were signed which bear upon the disposition of the 6 acres: (1) an earnest money receipt and agreement dated December 18, 1980, and signed either that day or the next day, providing for a sale price of $152,000 for 76 acres; (2) the real estate contract dated and signed on December 19; (3) a warranty deed conveying 6 of the 76 acres to Elder; (4) a quitclaim deed executed by Elder conveying 76 acres back to Malnar in the event of Elder's default. The real estate contract provides in paragraph 17: Upon payment of the sum of $3,000 in addition to the annual payments herein required, Seller agrees to release 1 acre lots. The releases will be upon approval of Bow Valley Resources of Denver, Colorado. Buyer shall receive credit for all sums paid for lot releases on the last payments to become due. It is not intended that said $3,000 per acre should be extra consideration, but merely early payment for early release of the lot. (Emphasis added.) Malnar argues that this language in the contract indicates her intention to release the 6-acre parcel only upon payment of $3,000 per acre over and above the specified annual payments. Plaintiffs counter with language in the earnest money receipt and offer to purchase, which provides: Seller to carry balance over a five year period with 5 annual payments, first annual payment 1 year from closing. Interest on the balance will be 10%. Seller to release 6 acres at closing and will release 10 acre parcels upon payment of $3,000.00 per acre all releases must be approved by Bow Valley of Denver Colorado. Released parcel will start on the northern boundary line and move in a southerly direction. Plaintiffs argue that the 6-acre parcel was deeded free and clear and that the property earmarked for early release upon payment of $3,000 per acre was one or more 10-acre parcels separate from the 6 acres. The trial court heard testimony on the intent of the parties when they signed the conflicting documents. Elder testified that he was being given title to 6 acres for paying $2,000 per acre for the 76 acres instead of $1,500 per acre, the original asking price. He paid for the 6 acres at the time of the agreement and testified that he was given clear, free title. Malnar testified that she thought the deed to the 6 acres was going into escrow and that she would not have signed the deed had she known the 6 acres were to be immediately conveyed to Elder. Another witness present at the closing testified that there was a lot of confusion at that time. The prices on the real estate contract had to be amended and the warranty deed signed. Due to the confusion, the parties did not make the change on the Quit-Claim Deed nor the Warranty Deed to match what actually happened that day. The trial court found: It was the intent of Elder and Malnar that [Elder] receive title to the said six (6) acre parcel at closing on December 19, 1980, as is more particularly evidenced by the following: the delivery to Elder on December 19, 1980, of the warranty deed covering the six (6) acres and the recording by Elder of said deed; the earnest money agreement dated December 18, 1980, which provided that the said six (6) acres tract be conveyed to Elder; and the treatment by Elder after closing on December 19, 1980, of the said six (6) acres as his sole property by making conveyances and assignments with respect thereto. In view of the intended immediate conveyance of the 6 acres, the court further found that the failure to exclude the 6 acres from the legal description in the quitclaim deed to Malnar was a mistake by Elder, Malnar, and the drafter of the instruments. While Malnar disputes the finding that she intended to immediately convey the 6 acres, the intent of the parties is a question of fact. We will not disturb the trial court's finding unless it is clearly erroneous. See Utah R.Civ.P. 52(a); Sacramento Baseball Club, Inc. v. Great Northern Baseball Co., 748 P.2d 1058, 1059-60 (Utah 1987). The findings are not against the great weight of evidence, Bountiful v. Riley, 784 P.2d at 1175, and are not clearly erroneous. We do, however, agree with Malnar that it was error for the court to quiet title to the 6 acres against her. Neither plaintiffs nor Malnar sought to quiet title. Indeed, plaintiffs never owned the tract and made no claim to it. Malnar could not have sought to quiet title in this action since neither Elder, Didericksen, nor his mortgagee was a party. It was therefore error for the court to decree that Malnar had no right, title, or interest in the tract. That part of the judgment is reversed.