Guillette v. Daly Dry Wall, Inc.
367 Mass. 355, 325 N.E.2d 572 (1975)
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Rule of Law:
A purchaser of land is bound by restrictions contained in a deed from a common grantor to another grantee if that prior deed, which is properly recorded, purports to restrict the grantor's remaining land. A title search must include an examination of all deeds from a grantor during the time they owned the land in question, not just those in the purchaser's direct chain of title.
Facts:
- Wallace L. Gilmore began selling lots in a subdivision called Cedar Hills Section I.
- In May 1968, Gilmore sold a lot to Pauline and Kenneth Guillette.
- The Guillettes' deed contained restrictions limiting lots to single-family dwellings and explicitly stated, "the same restrictions are hereby imposed on each of said lots now owned by the seller [Gilmore]."
- The Guillettes' deed was properly recorded in the public registry.
- In April 1972, Gilmore sold one of his remaining lots in the same subdivision to Daly Dry Wall, Inc. (Daly).
- Daly's deed referred to the subdivision plan but did not contain any reference to the restrictions.
- Daly had a title examination performed but was not aware of the restrictions at the time of purchase.
- Daly subsequently obtained a permit to construct a 36-unit apartment building on its lot.
Procedural Posture:
- The plaintiffs, owners of lots in the subdivision, sued Daly Dry Wall, Inc. in the Superior Court (trial court).
- The plaintiffs sought an injunction to prevent Daly from constructing an apartment building.
- The Superior Court referred the case to a master, whose report was confirmed.
- The Superior Court entered a final decree in favor of the plaintiffs, enjoining Daly from construction.
- Daly (appellant) appealed the decree to the Appeals Court.
- The Supreme Judicial Court of Massachusetts transferred the case for its own review.
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Issue:
Is a purchaser of a lot in a subdivision bound by restrictive covenants contained in a prior deed from the common grantor to another lot in the subdivision, when the purchaser's own deed does not mention the restrictions and they had no actual knowledge of them?
Opinions:
Majority - Braucher, J.
Yes, a purchaser is bound by such restrictions. When a grantor binds their remaining land by a writing in a recorded deed to one grantee, a subsequent purchaser of that remaining land acquires title subject to those restrictions. The deed from Gilmore to the Guillettes conveyed not only their lot but also an interest in the remaining land Gilmore owned, creating an encumbrance on it. Because this deed was properly recorded, it provided constructive notice to all subsequent purchasers, including Daly. In a grantor-grantee indexing system, a title examiner has a duty to search all conveyances from a grantor during the period they owned the land, not merely the direct chain of title for the specific lot being purchased. Therefore, Daly is charged with notice of the restriction in the Guillette deed and is bound by it.
Analysis:
This decision solidifies the concept of constructive notice through a broad inquiry into a common grantor's conveyances, placing a significant burden on title examiners in jurisdictions with grantor-grantee indexing systems. It establishes that a buyer cannot safely limit a title search to their property's direct chain of title but must investigate other deeds from the same grantor to discover potential reciprocal negative easements. This prioritizes the enforcement of common development schemes over the convenience of subsequent purchasers, impacting title search standards and increasing potential liability for examiners who fail to conduct an exhaustive search.
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