Opinion ID: 1169136
Heading Depth: 1
Heading Rank: 2

Heading: Misrepresentations Concerning Deed of Trust

Text: In December 1980, the respondent agreed to purchase real property owned by Helen Cowan Cox and James Cowan. The respondent paid Cox and Cowan $15,284 in cash and gave them a promissory note for $26,000, representing the balance of the purchase price, and a deed of trust securing the note. The respondent told Cox and Cowan that he would record the deed of trust so as to provide Cox and Cowan with a first lien on the property. Before he recorded the deed of trust, however, the respondent obtained a bank loan, also secured by a deed of trust on the property. The bank promptly recorded its deed of trust, but the respondent neglected to record the deed of trust held by Cox and Cowan until several weeks later. When the respondent became delinquent in his loan payments to the bank, the bank began foreclosure proceedings, claiming a first lien on the property. In response to requests by Cox and Cowan that the respondent satisfy the $26,000 note, the respondent stated that he was trying to sell the property in order to pay off the note. The respondent did sell the property but did not pay any money to Cox and Cowan. The stipulation recognizes that these actions by the respondent violated DR1-102(A)(1) (violating a disciplinary rule), DR1-102(A)(4) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation), and DR1-102(A)(6) (engaging in conduct that adversely reflects on fitness to practice law), and therefore grounds for discipline exist under C.R.C.P. 241.6(1) (any act or omission that violates the provisions of the Code of Professional Responsibility) and C.R.C.P. 241.6(3) (any act or omission that violates the highest standards of honesty, justice, or morality).