Waters v. Wambach

Tjejtee, J., delivered tire opinion of the Court. On April 22nd, 1915, Theodore Cooke leased to the appellee a- house and lot on 31st Street in Baltimore for the term of six months, beginning on May 1st, 1915, at a rental of twenty-seven dollars per month, with the privilege of renewal for another term of six months. It was further agreed in the, lease that “all its provisions and covenants, shall continue in force from term to term after the expiration of the term” first mentioned, but either of the parties should have the right to terminate the lease at the end of any term by giving to the other party at least thirty days’ previous notice in writing, and-that the lessee should have the option-to purchase the leased property at the price of $2,GOO subject to an annual ground rent of $75, and.in case he should desire to buy the property “within the term” of the lease, lie should “be allowed the rent paid in, less the ground rent, water rent, taxes, insurance and-interest at the rate of six per cent on the. purchase price.” The lease was signed and sealed for the lessor by his authorized agent. At. the time of its execution the title to the property was held by IT.

Webster Cooke, the. lessor’s son, who was his partner in the real estate business. After the death of Theodore Cooke in January, 1918, the monthly rent accruing under the lease-was paid to his estate while it was in course of administration. In February, 1919, the property referred to was conveyed to his daughter, Sophie O. Waters, by the son who held the title. Mrs. Waters has since received the rent.

Just prior to the conveyance to her, the administrators of Theodore Oookes estate, of 'whom she was one, had given notice to the lessee that the existing lease, would not- be renewed after the expiration of the current, term on April 30th, 1919, and thereafter the rent would be in ²⁵⁵ creased to thirty-two- dollars per month. In April, 1919, the lessee gave notice to Mrs,. Waters of his purpose to exercise the option of purchase which the lease- conferred. His right to avail himself of the option was denied and the pending suit for specific performance resulted.

The appeal is from a decree requiring the conveyance of the property to the lessee for the price and upon the terms stated in the lease. The grounds of defense mentioned in the answer are that the lease and the option it contained were no-t authorized by the holder o-f the record title, that the defendant acquired the title without knowledge o-f the' option, and that the plaintiff’s right to exercise it has been lost by delay. The evidence in the case points to- the conclusion that Theodore Cooke was the real owner of the demised property, while the title was nominally hold by his- son and partner. It is proven that the property was entirely under the father’s control and that the rent was received by him exclusively.

There is testimony to the effect that he represented himself to be the owner, and that, a few months before his death, he urged the plaintiff to make the purchase since attempted. The son, who was the only witness for the defendant, and who does not say that he paid for the property, testified that it was conveyed to him pursuant to an agreement with his father “in the nature of a partnership- in the development of real estate,” and that the conveyance to his sister, the defendant, after his father’s death, was in consideration of love and affection and in order “to avoid any friction in the family.” The fact that the property belonged to the father was practically conceded by the son in his acceptance, as one of the administrators, of the rent which the plaintiff regularly paid to them in that capacity. In the answer first filed by the defendant, it was admitted that she acquired the leased premises in the division of the estate of her deceased father. An amended answer withdrew that