Case Summary:
Chapter 7 Trustee filed this adversary proceeding seeking a declaratory judgment that a mortgage was void on its face because it lacked a legal description of the property. The mortgage at issue contained only a street address, but did not include a legal description. It was also recorded in the grantor/grantee index. Trustee argued the mortgage could be avoided under 11 U.S.C. §544(a)(3) because it did not give adequate notice of the mortgage and it violated the Wisconsin statute of frauds. Defendant Wells Fargo argued the mortgage described the property with reasonable certainty. The Court ruled the Trustee had sufficient notice of the mortgage because it was recorded in the grantor/grantee index. The Court also found the mortgage satisfied the statute of frauds because under the facts of this case the address described the land with reasonable certainty.
Statute/Rule References:
11 U.S.C. § 544(a)(3)
Wis. Stat. § 706 -- Conveyances of Real Property, Recording, Titles
Key Terms:
Grantor/Grantee Index
Land Description
Statute of Frauds