Deljoo v. SunTrust Mortgage Inc.

Although the security deed in question referenced the wrong Land Lot, it correctly identified the real property by reference to and incorporation of a recorded subdivision plat.

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We granted certiorari to the Court of Appeals in Deljoo v. SunTrust Mortgage , 289 Ga. App. 396 657 SE2d 319 2008 to address whether a duly recorded deed to secure debt on certain real property was outside the chain of title where it incorrectly identified the land lot number but otherwise identified the parcel by reference to a subdivision plat. In 2001 SConstruction sold lot 16 in the Villas at Hidden Hills subdivision to Vanguard Builders and Developers, LLC, which in turn sold the property to appellee Doris Milton in 2005. placeCityMiltonobtained financing from appellee SunTrust Mortgage, Inc. “SunTrust”. Previous to those conveyances, SF Construction gave appellant Daniel Deljoo a deed to secure debt to the property as security for a $204,000 loan. Deljoo’s deed, which was filed of record in 2000, referred to the same property but mistakenly described it as being in Land Lot 18, instead of the correct PlaceNamedesignationPlaceTypeLandplaceLot28. The legal description appended as Exhibit “A” to Deljoo’s security deed, provided as follows: “All that tract or parcel of land lying and being in Land Lot 18 sic of the 16th District, DeKalb County, Georgia, being Lots 15 and 16, Villas at Hidden Hills, as per plat recorded in Plat book 109, page 40, DeKalb County Records, which plat is incorporated herein by reference thereto.”1 Other than the incorrect land lot designation, the property description is identical to that contained in the conveyance from Vanguard to placeCityMiltonA title examination performed for placeCityMilton failed to reveal Deljoo’s security deed.

SunTrust sued Deljoo and Milton seeking cancellation of the security deed. All parties filed motions for summary judgment. The trial court granted summary judgment to SunTrust and Milton, concluding that the error in Deljoo’s deed took it out of the chain of title and that Milton and SunTrust were bona fide purchasers for value without notice of the deed. The Court of Appeals affirmed. Deljoo , supra. For the reasons which follow, reversal is mandated.

Deljoo v. SunTrust Mortgage Inc.

Although the security deed in question referenced the wrong Land Lot, it correctly identified the real property by reference to and incorporation of a recorded subdivision plat.

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