Martinez v. Martinez
New Mexico Supreme Court
678 P.2d 1163 (1984)
Delfino and Eleanor Martinez (sellers/plaintiffs) sold their home to Carlos and Sennie Martinez (buyers/defendants) in 1970, with the buyers assuming the sellers' mortgage; when the sellers delivered the deed, they orally instructed the buyers to forward it to the mortgagee, Southwest Savings and Loan, to hold in escrow until the mortgage was paid in full. After the buyers defaulted in 1980, the sellers cured the default and claimed the property should revert to them under the contract; Carlos reconveyed his interest, but Sennie did not, so the sellers sued to recover title, and the trial court found the transfer of title had been conditioned on full satisfaction of the mortgage and ruled for the sellers.
Whether title to property can be transferred upon delivery of a deed without a present intent of the grantor to divest title.