|
JONES r, JONES.—1 BLAND. 427
sold wader a fieri facias, it is held to be made into money; or, if
it be realty, that it is by such sale converted into money, or per-
sonalty.
It frequently occurs in this Court on creditors' bills, where the
originally suing creditor claims by simple contract, and the land
has been sold to satisfy his claim, that there afterwards came in
mortgagees or judgment creditors; in which case the sale stands
and is deemed valid, and their liens are considered as following
and binding the proceeds of the sale; not because those proceeds
are held to be realty; but because no act of any other creditor, or
of the Court can divest a mortgagee or judgment creditor of his
lien upon the lands without giving him a satisfaction, according to
the priority of his lien, out of the proceeds of the sale of that
land which had been so bound. If, however, in a creditors' suit
against the representatives of their deceased debtor, his lands are
sold to pay his debts, leaving a surplus: or if. in a suit by a mort-
gagee against the heirs of the mortgagor, the mortgaged land is
sold to pay the debt, leaving a surplus, in such cases the surplus
is considered * as a part of the proceeds of the real assets
taken from the heir; therefore, must be paid to him, not to 453
executor or administrator of his ancestor: and, consequently, can
only be taken from him to satisfy other claimants, wbo may have
an equity to be let in, after the distribution, by a special applica-
tion, under the creditors' bill, or in the suit by the mortgagee, upon
the ground of the insufficiency of the personal estate of the
deceased. Pow. Mort. by Coren. 983; Bromley v. Goodere, 1 Atk.
75; Flanagan v. Flanagan, cited 1 Bro. C. C. 500; Banks v. Scott,
5 Mad. 493; Mackubin v. Brown, ante, 410; Wright v. Rose, 2 Sim.
& Stu. 323; Femcick v. Laughlin, post, 474.
There are other modes of judicial proceeding by which real estate
may be changed into personalty, or by which lands may be con-
verted into money or choses in action. This often occurs under the
Acts of Assembly directing the course of descents; according to
which, where the lands of an intestate are incapable of being
divided among his heirs without loss, they may, on application to
the proper Court of law, be ordered to be sold, and the proceeds
of the sale, or the bonds of the purchaser, divided among the
heirs. But the exact point of time when the judicial proceeding,
instituted for that purpose, had effected a change in the nature of
the property, was considered as a most interesting question in its
consequences to the relative rights of the parties. As to which it
was held, after mature deliberation, that the mutation of the estate,
from real to personal, may be determined to be complete when the
commissioners' sale is ratified by the Court, and the purchaser has
complied with the terms of it, by paying the money, if the sale is
for cash, or by giving bonds to the representatives, if the sale is
on a credit. "The State v. Krebs, 6 H. & J. 36.
|
 |