Also known as: absolute conveyances · absolute transfer
Written by attorneys · grounded in primary & secondary sources — see below
A conveyance transferring property or rights free of conditions or qualifications and not intended as security for an obligation. Courts admit parol evidence to determine whether a deed absolute in form was in substance given only as security and must therefore be treated as a mortgage.
Martin grants Apex Lending LLC a mortgage on his apartment building. The mortgage states that if net rental income falls below $50,000 the mortgage automatically converts into an absolute deed giving Apex full ownership with no redemption right. When income drops, Apex records the deed. Martin sues to quiet title. The court declares the conversion clause void and preserves Martin's equity of redemption.
The state legislature repeals prior grants of land and attempts to annul the absolute conveyances already executed to private purchasers. The grantees sue to quiet title. The Court holds that an absolute conveyance is a completed contract protected by the Constitution and cannot be divested by subsequent legislation.
Select any source to read its text and confirm it supports the definition.
Brainard executes instruments purporting to transfer future income into trust. The Commissioner challenges the transfers as incomplete. The court examines whether the instruments operated as absolute conveyances or merely as promises to create a trust later, applying contract principles to determine enforceability.
A settlor transfers substantially all his property to trustees under an agreement that leaves him full lifetime control. After his death his widow claims her statutory share. The court determines whether the absolute conveyances to the trust were effective or merely illusory attempts to defeat the spouse's expectant interest.
Courts admit parol evidence to establish that a deed absolute on its face was given as security for an obligation and must be treated as a mortgage. The evidence may include side letters, board minutes, continued possession by the grantor, and payment of carrying costs. Once the debt is repaid the grantee must reconvey.
No. Any provision that converts a security interest into an absolute conveyance or eliminates the right to redeem is an impermissible clog on the equity of redemption and is void as against public policy. The mortgagor retains the right to pay the debt and obtain reconveyance before foreclosure.
No. Recording protects subsequent purchasers but does not bar the original parties from showing the true character of the transaction. Parol evidence remains admissible between grantor and grantee to establish that the deed operated only as a mortgage.
No. The equity of redemption is an essential attribute of every mortgage that cannot be waived or unreasonably restricted at the time the security is created. Courts invalidate such waivers regardless of the parties' sophistication or bargaining power.
…executing their contracts by conveyances. It would be strange if a contract to convey was secured by the constitution, while an absolute conveyance remained unprotected. If, under a fair construction of the constitution, grants are comprehended under the term contracts, is a grant from the state excluded from the operation of the…