Micklethwait v. Fulton

The dominant question presented for our determination is whether an escrow deed, which was wrongfully delivered and recorded before performance of the conditions of the escrow, is a valid deed of conveyance as to third persons who innocently renew or extend credit to the grantee on the strength of and in reliance upon his record ownership of the property therein described.

A third person, extending credit to a record owner of real estate in reliance upon the latter’s record title thereto, and without any notice or knowledge of any defect in the conveyance, occupies the position of an innocent…