CARL L. LUNEKE, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF SHARRON LUNEKE, AND CARL L. LUNEKE, INDIVIDUALLY, APPELLANTS,
v.
ROBERTA M. BECKER, APPELLEE
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Carl Luneke appeals an ejectment order granting possession of real property to Roberta Becker based on alleged termination of an agreement for deed upon Sharron Luneke's death. The court reverses, holding that an executed agreement for deed is a mortgage subject to foreclosure procedures, not ejectment, and that the vendor cannot repossess property from the mortgagor.
The court held that an executed agreement for deed is a mortgage subject to the same foreclosure rules, not ejectment procedures. In a lien theory jurisdiction like Florida, the mortgagor/vendee cannot be ejected from the property, and the vendor's proper remedy is foreclosure, not ejectment.
[1] An agreement for deed is treated as a mortgage in Florida, subject to the same rules of foreclosure.
[2] In a lien theory jurisdiction, a vendor under an agreement for deed does not have the right to repossess the property and must instead proceed with a foreclosure action.
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Join FLexlaw to unlock all legal intelligence“An agreement for deed is deemed to be a mortgage and subject to the same rules of foreclosure as a mortgage.”
Establishes the fundamental legal classification that governs the parties' rights and remedies
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Join FLexlaw to unlock all legal intelligenceRoberta Becker entered into an agreement for deed with her daughter Sharron Luneke in August 1989, who lived on the property with her husband Carl. Be…
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PATTERSON, Judge.
Carl Luneke, individually and as personal representative of the estate of his wife, Sharron, appeals a nonfinal order determining the immediate right to possession of real property. See Fla.R.App.P. 9.130(a)(3)(C)(ii). The order appealed ejects Mr. Luneke from real property and grants appellee Roberta Becker a writ of possession based on the alleged termination of an agreement for deed entered into between Ms. Becker and her daughter, Sharron Lu-neke. We reverse the order and remand for further proceedings.
On August 16, 1989, Ms. Becker, as vendor, entered into an agreement for deed with her daughter, Sharron. At the time the agreement for deed was executed, Sharron and her husband, Carl, were already residing on the property. After the agreement for deed was executed, the Lu-nekes invited Ms. Becker to move in with them, and she did.
Notwithstanding the terms of the agreement for deed, Ms. Becker continued to make payments on a first mortgage and never requested that her daughter or son-in-law make payments on the mortgage. When the agreement for deed was prepared, Ms. Becker’s attorney advised the parties that it was within Ms. Becker’s discretion to either have her daughter actually make payments pursuant to the terms of the agreement or she could waive payments as a gift to her daughter. Sharron Luneke died on June 15, 1991. Her husband was appointed personal representative of her estate, and under the terms of the will admitted to probate, he became her sole devisee. Following her daughter’s death, Ms. Becker continued to live with Mr. Luneke until she broke her hip. Although her son-in-law again invited her to return to the home after her recovery, Ms. Becker refused to return unless he first vacated the premises. Mr. Luneke changed the locks on the doors to the premises and refused to vacate.
On April 8, 1992, Ms. Becker filed an action against Mr. Luneke individually and as personal representative of Sharron’s estate. Count I of the complaint sought rescission of the agreement for deed and alleged failure of consideration. Count II sought ejectment and damages. The ejectment count proceeded to a hearing in summary procedure. The trial court granted Ms. Becker’s demand for ejectment, ordered Mr. Luneke to vacate the premises, and directed the issuance of a writ of possession in Ms. Becker’s favor. The trial court based its decision on its conclusion that the agreement for deed was personal to Sharron Luneke and that her death dissolved and terminated the contract.
In determining that the agreement for deed was a personal contract which terminated on Sharron’s death, the trial court relied on Frissell v. Nichols, 94 Fla. 403, 114 So. 431 (1927). Frissell dealt with an executory contract, a lease/option which the lessee had not yet exercised before his death. The present case, however, involves an executed agreement for deed. An agreement for deed is deemed to be a mortgage and subject to the same rules of foreclosure as a mortgage. See § 697.01, Fla.Stat. (1991); First Fed. Savings & Loan Ass’n of Ft. Myers v. Fox, 440 So. 2d 652 (Fla. 2d DCA 1983). In Florida, a “lien theory” jurisdiction, the mortgagor may not be ejected from the property. See Martyn v. First Fed. Savings & Loan Ass’n of W. Palm Beach, 257 So. 2d 576 (Fla. 4th DCA 1971), cert. denied, 262 So. 2d 446 (Fla.1972).
Thus, the vendor under an agreement for deed has no right to repossess the property; the vendor must proceed with a foreclosure action. See Fox, 440 So. 2d at 653; Mid-State Inv. Corp. v. O’Steen, 133 So. 2d 455 (Fla. 1st DCA), cert. denied, 136 So. 2d 349 (Fla.1961). Accordingly, the proper remedy in this case was not ejectment, but a foreclosure action. We reverse the judgment and remand the cause for further proceedings on the remaining count and to allow Ms. Becker leave to amend her complaint to include a foreclosure count.
Reversed and remanded.
HALL, A.C.J., and THREADGILL, J., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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Free v. Free, 936 So. 2d 699 (Fla. 5th DCA 2006)…h include the seller’s remedy of foreclosure if the buyer defaults and the buyer’s right of redemption. § 697.01, Fla. Stat. (2005); Vandenberg v. Wells, 721 So. 2d 453 (Fla. 5th DCA 1998) (and cases cited therein); see also Muina; Luneke v. Becker, 621 So. 2d 744 (Fla. 2d DCA 1993). A mortgage creates a lien under Florida law, and because it does not convey an interest in real property, the requirements associated with its execution are not as exacting as those of instruments of conveyance, such as a deed.…
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Corey v. Unknown Heirs (Fla. 2d DCA 2020)
Authorities Cited
- Frissell v. Nichols, 94 Fla. 403 (Fla. 1927)
- Mid-State Inv. Corp. v. O'Steen, 133 So. 2d 455 (Fla. 1st DCA 1961)
- Martyn v. First Fed. Sav. & Loan Ass'n OF W. Palm Beach, 257 So. 2d 576 (Fla. 4th DCA 1971)
- First Fed. Sav. & Loan Ass'n of Fort Myers v. FOX, 440 So. 2d 652 (Fla. 2d DCA 1983)
- O'Steen v. Mid-State Inv. Corp., 136 So. 2d 349 (Fla. 1961)
- City of Fort Lauderdale v. Kluianco, 136 So. 2d 349 (Fla. 1961)
- First Fed. Sav. & Loan Ass'n OF W. Palm Beach v. Martyn, 262 So. 2d 446 (Fla. 1972)
- Porter v. Mims Citrus Growers' Ass'n, 262 So. 2d 446 (Fla. 1972)