Probst v. Jones

For some years, and many times, defendant had borrowed money from plaintiff and paid him two per cent, interest per month. In 1928 they settled accounts and determined that defendant owed plaintiff $1,500. Plaintiff loaned him an other $1,000 and took his demand note for $2,500 and a warranty deed of certain premises as security. The deed was not recorded, whether at plaintiff’s suggestion or not is in dispute. Some eight months later defendant sold the premises to a Iona fide purchaser for value and without notice of plaintiff’s deed (mortgage).

Plaintiff brought suit against defendant and…