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58-2401. How trust concerning land created. No trust concerning lands except such as may arise by implication of law shall be created, unless in writing signed by the party creating the same, or by his or her attorney thereto lawfully authorized in writing.

History: G.S. 1868, ch. 114, ยง 1; October 31; R.S. 1923, 67-401.

Cross References to Related Sections:

Execution of instrument creating trust, see 58-2210.

CASE ANNOTATIONS

1. Parol agreement which attempts to create interest in lands void. Bell v. Coffin, 2 K.A. 337, 43 P. 861.

2. Land entered on borrowed warrant; valuable improvement made; implied trust. Lyons v. Bodenhamer, 7 K. 455, 474.

3. Conveyance by party holding legal title; trustee for equitable owner. Gray v. Ulrich, 8 K. 112, 123.

4. Estate resulting from parol agreement by operation of law valid. Moore v. Wade, 8 K. 380, 387.

5. Creation of trust by execution and record of plat. Comm'rs of Franklin Co. v. Lathrop, 9 K. 453.

6. No express trust in land created except in writing. Knaggs v. Mastin, 9 K. 532, 547.

7. Deed regular on face; grantee ignorant of irregularity; no trust. Knaggs v. Mastin, 9 K. 532.

8. Conveyance to church society; court may compel execution of trust. Feizel v. Trustees of German M. E. Society, 9 K. 592.

9. Estate resulting from or created by law not void. Franklin v. Colley, 10 K. 260, 263, 264.

10. Trust in favor of party paying purchase money or part thereof. Franklin v. Colley, 10 K. 260, 264, 265.

11. Contract in violation of law; held no trust estate resulted. Brake v. Ballou, 19 K. 397.

12. Deed of trust construed as a trust for benefit of creditors. Jamison, Trustee, v. Bancroft, 20 K. 169.

13. Title taken to secure loan; trust in favor of borrower. Weekly v. Ellis, 30 K. 507, 2 P. 96.

14. Express trust can be created only by instrument in writing. Ingham v. Burnell, 31 K. 333, 2 P. 804; Gee v. Thrailkill, 45 K. 173, 25 P. 588.

15. Oral agreement with agent to purchase land; resulting trust. Rose v. Hayden, 35 K. 106, 10 P. 554.

16. Terms and conditions may be embraced in several papers. Tenney v. Simpson, 37 K. 579, 588, 15 P. 512.

17. Trust in favor of church organization paying purchase price. Fink v. Umscheid, 40 K. 271, 19 P. 623.

18. Parol trust void; deed of conveyance held absolute and valid. Gee v. Thrailkill, 45 K. 173, 25 P. 588.

19. Resulting trust expressly excepted from statute; existence and enforceability. Rayl v. Rayl, 58 K. 585, 588, 50 P. 501.

20. Constructive trust where deed procured by fraud. Kahn v. Klaus, 64 K. 24, 67 P. 542.

21. Trust arising from operation of law; inferred from circumstances. Lyons v. Berlau, 67 K. 426, 432, 73 P. 52.

22. Deed conveying property; parol trust cannot be enforced against grantee. Rogers v. Richmond, 67 K. 706, 74 P. 255.

23. Express trust not in writing; stranger to agreement cannot attack. Mallory v. Thomas, 71 K. 562, 81 P. 194.

24. Section does not prohibit resulting trust for person paying purchase price. Reemsnyder v. Reemsnyder, 75 K. 565, 567, 568, 89 P. 1014.

25. Parol evidence, etc., sufficient to establish trust by implication. Piper v. Piper, 78 K. 82, 84, 95 P. 1051.

26. Conveyance for cancellation of debt; resulting trust may be created. Garten v. Trobridge, 80 K. 720, 104 P. 1067.

27. Trust arising by implication of law excepted from rule. Lehrling v. Lehrling, 84 K. 766, 770, 115 P. 556.

28. Trust implies holding of legal title for benefit of another. Blackwell v. Blackwell, 88 K. 495, 497, 498, 129 P. 173.

29. Absolute conveyance cannot be defeated by verbal promise to reconvey. Blackwell v. Blackwell, 88 K. 495, 497, 498, 129 P. 173.

30. Oral agreement to devise property upheld; not within section. Nelson v. Schoonover, 89 K. 388, 390, 131 P. 147.

31. Parol agreement concerning lands; neither express nor implied trust created. Grantham v. Conner, 97 K. 150, 152, 154 P. 246.

32. Statute no bar to oral agreement to make a will. Meador v. Manlove, 97 K. 706, 712, 156 P. 731.

33. Verbal promise to reconvey land. Part performance; fraud; trust. Goff v. Goff, 98 K. 201, 204, 158 P. 26.

34. Parol evidence admissible to show that deed is a mortgage. Hegwood v. Leeper, 100 K. 379, 381, 164 P. 173.

35. Oil lease, held by one for all; oral agreement valid. Goss v. Rothrock, 102 K. 272, 274, 169 P. 1161.

36. Oral promise to leave property to heir not void. Stahl v. Stevenson, 102 K. 844, 847, 171 P. 1164.

37. Payment of purchase price does not validate parol contract. Engelbrecht v. Herrington, 103 K. 21, 24, 172 P. 715.

38. Express trust in land created only by a writing. Engelbrecht v. Herrington, 103 K. 21, 23, 172 P. 715.

39. The parol agreement was insufficient to create a trust. Silvers v. Howard, 106 K. 762, 768, 190 P. 1.

40. Oral agreement between tenants in common; permanent improvements; specific performance. Kuhn v. Kuhn, 107 K. 391, 393, 191 P. 487.

41. Oral agreement and conveyance by mother; fiduciary relation existed. Small v. Small, 107 K. 122, 125, 190 P. 623.

42. Oral trust concerning land held void. Miller v. Kyle, 107 K. 388, 391, 191 P. 492.

43. Section is not a bar to trust arising by implication of law. Rice v. Rice, 109 K. 432, 437, 199 P. 461. Modified: Rice v. Rice, 110 K. 3, 202 P. 862.

44. Refusal of grantee to carry out spoken promise does not create trust by implication. Bolin v. Krengel, 116 K. 459, 227 P. 266.

45. Parol agreement to convey does not create trust by implication. Spaulding v. Dague, 120 K. 510, 514, 243 P. 1045.

46. Creditor cannot object if maker desires to carry out oral trust. Hurt v. Drew, 122 K. 357, 252 P. 249.

47. Oral agreement to hold land in trust held void. Quinton v. Kendall, 122 K. 814, 821, 253 P. 600.

48. Confidential relation may create trust by implication. Shields v. Johnson, 124 K. 155, 158, 257 P. 926; Taylor v. Walker, 114 K. 614, 220 P. 518.

49. Land purchased with father's money with promise to convey to son. Roberts v. Roberts, 130 K. 85, 90, 285 P. 584.

50. No constructive trust where deeds voluntarily signed and recorded, and no fraud shown. Mullen v. Hume, 130 K. 240, 242, 285 P. 626.

51. Express trust concerning land, not in writing, fails. Vaughn v. Cass, 131 K. 837, 839, 293 P. 487.

52. Cited in holding part performance removes bar of statute of frauds, when. Craig v. Sanders, 133 K. 97, 99, 298 P. 792.

53. Parol agreement creating trust in lands held invalid. Young v. Jackson, 140 K. 237, 242, 36 P.2d 91.

54. Resulting trust arising by implication of law excepted from rule. Gray v. Gray, 140 K. 551, 553, 38 P.2d 141.

55. Although agreement void under statute parties may carry out agreement. Stump v. Smarsh, 153 K. 804, 810, 113 P.2d 1058.

56. Section applies only to creation of express trusts; (dissenting opinion). Yeager v. Yeager, 155 K. 734, 738, 750, 129 P.2d 242.

57. Oral agreement creating trust not prohibited if trust arises by implication. Staab v. Staab, 158 K. 77, 79, 80, 145 P.2d 452.

58. Trust denied father furnishing consideration in absence of agreement. Gantz v. Bondurant, 159 K. 389, 392, 155 P.2d 450.

59. Trust, sufficiency of evidence to establish; conflicting inferences. In re Estate of Gereke, 165 K. 249, 250, 262, 263, 264, 195 P.2d 323.

60. Joint purchase of property; fraud of one in taking title; oral agreement upheld. Kotzman v. Papish, 169 K. 431, 436, 219 P.2d 425.

61. Statute available only to parties to contract and their privies; not to third parties. Powell v. Powell, 172 K. 267, 270, 239 P.2d 974.

62. Evidence insufficient to give rise to trust by implication of law. In re Estate of Meyers, 183 K. 664, 666, 331 P.2d 287.

63. Agreement that title taken by husband and wife proved by parol. Commissioner of Internal Revenue v. Molter, 60 F.2d 498.

64. Statute of trusts no bar to enforcement of oral contract relating to land which one party fully performed. King v. Robbins, 193 K. 70, 73, 76, 392 P.2d 154.

65. Trust by implication could not be applied to bankrupt corporation's real estate used as collateral, absent fraud. In re Harter, Inc., 31 B.R. 1015, 1016, 1019 (1983).

66. Where debtors failed to honor terms of alleged trust, creditor could challenge validity under statute of frauds. In re Butler, 38 B.R. 884, 885, 888 (1984).

67. Trust by implication may arise from oral agreement and evidence of fraud; equitable estoppel renders statute inapplicable. Potucek v. Potucek, 11 K.A.2d 254, 258, 259, 719 P.2d 14 (1986).

68. Only a written recorded declaration of trust will impart notice that real property is held by a grantee in express trust for another. In re Kasparek, 426 B.R. 332 (2010).


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