Bean v. Walker
Supreme Court of New York, Appellate Division
95 A.D.2d 70 (N.Y. App. Div. 1983)
Franklin Bean (plaintiff) agreed to sell his home to Carl Walker (defendant) for $15,000 at 5 percent interest, payable over 15 years, with Bean keeping legal title until the price was fully paid. Walker took possession, paid taxes and insurance, and made substantial improvements over eight years, paying Bean over $12,000 (about $7,100 of it principal) before defaulting in 1981. The contract said that on default, Bean could repossess the property and keep Walker's payments as rent. Bean sued to enforce the contract as written, and the trial court granted him summary judgment. Walker appealed.
Whether a contract for the sale of real property can withhold legal title from the buyer until the full purchase price is paid, letting the seller simply repossess on default rather than foreclose.