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2018 Georgia Code 23-1-16 | Car Wreck Lawyer

TITLE 23 EQUITY

Section 1. General Provisions, 23-1-1 through 23-1-25.

23-1-16. Taking with notice of equity.

He who takes with notice of an equity takes subject to that equity.

(Orig. Code 1863, § 3024; Code 1868, § 3036; Code 1873, § 3091; Code 1882, § 3091; Civil Code 1895, § 3932; Civil Code 1910, § 4529; Code 1933, § 37-115.)

JUDICIAL DECISIONS

Ordinarily proof of notice will avail nothing unless a party can couple such proof of notice with proof of a right, title, equity, claim or interest in the land in controversy. Hicks v. Smith, 205 Ga. 614, 54 S.E.2d 407 (1949).

Where a successor tenant in common acquired her interest by deed of gift, she took, not as a bona fide purchaser, but with notice of whatever equities the other original tenant in common had in the property. Bowers v. Bowers, 208 Ga. 85, 65 S.E.2d 153 (1951).

If after notice that one has made a contract to pass title to another to certain property, a third person cuts in, buys it, and takes a conveyance thereto, such person stands in the place of his vendor, and a court of equity, if it would decree specific performance of the contract by his vendor, will render a like decree against him. Pace v. Pace, 220 Ga. 66, 137 S.E.2d 28 (1964).

Construction with O.C.G.A.

§ 23-6-64. - Findings entered by a special master, which determined that the disputed portion of an alley belonged to a landowner, and not the neighbors, by operation of the landowner's prior recorded deed, was not clearly erroneous, as: (1) the landowner received the property via a valid deed; (2) the neighbors failed to put the landowner on notice of their claim; and (3) the neighbors' claim of possession and use was insufficient. Cernonok v. Kane, 280 Ga. 272, 627 S.E.2d 14 (2006).

Notice of restrictive covenant.

- Successor landowners were liable for breach of a restrictive covenant because, as buyers, they were charged with notice of the covenant in a recorded agreement, which required them to build a fence upon development of the property. Lesser v. Doughtie, 300 Ga. App. 805, 686 S.E.2d 416 (2009).

Genuine issue of fact as to inquiry notice of unrecorded deed.

- Trial court erred by granting summary judgment to the plaintiff because the record showed that there was an issue of fact as to whether the defendants' possession of the property put the plaintiff on inquiry notice of the defendants' title despite the defendants' deed not being recorded. Caraway v. Spillers, 332 Ga. App. 588, 774 S.E.2d 162 (2015).

Restrictive covenants in deed enforceable in equity.

- In a quiet title action commenced by a property purchaser, the restrictive covenants in a deed limiting the use of the land for a gas station were held enforceable in equity regardless of whether or not the burdens and benefits of the covenants ran with the land or were held in gross because it was undisputed that the purchaser had notice of them when it purchased the property. North Bay Avalon, LLLP v. Speedway, LLC, 340 Ga. App. 899, 797 S.E.2d 510 (2017).

Cited in Waynesboro Planing Mill v. Augusta Veneer Co., 35 Ga. App. 686, 134 S.E. 790 (1926); Voyles v. Carr, 173 Ga. 627, 160 S.E. 801 (1931); Carmichael Title Co. v. Yaarab Temple Bldg. Co., 177 Ga. 318, 170 S.E. 294 (1933); Toms v. Knighton, 199 Ga. 858, 36 S.E.2d 315 (1945); Shirling v. Hester, 201 Ga. 706, 40 S.E.2d 743 (1946); Smith v. Lanier, 202 Ga. 165, 42 S.E.2d 495 (1947); Stembridge v. Smith, 213 Ga. 227, 98 S.E.2d 609 (1957); Dollar v. Dollar, 214 Ga. 499, 105 S.E.2d 736 (1958); Williamson v. Floyd County Wildlife Ass'n, 215 Ga. 789, 113 S.E.2d 626 (1960); Bacote v. Wyckoff, 251 Ga. 862, 310 S.E.2d 520 (1984); Southeast Toyota Distribs., Inc. v. Fellton, 212 Ga. App. 23, 440 S.E.2d 708 (1994).

RESEARCH REFERENCES

Am. Jur. 2d.

- 27 Am. Jur. 2d, Equity, §§ 139, 167.

ALR.

- Right of one who, with knowledge of outstanding equity, derived his interest in real property from or through a bona fide purchaser, to same protection as latter, 63 A.L.R. 1362.

Check given in land transaction as sufficient writing to satisfy statute of frauds, 9 A.L.R.4th 1009.

Cases Citing O.C.G.A. § 23-1-16

Total Results: 8  |  Sort by: Relevance  |  Newest First

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Thomas v. Dickson, 301 S.E.2d 49 (Ga. 1983).

Cited 65 times | Published | Supreme Court of Georgia | Mar 17, 1983 | 250 Ga. 772

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Recycle & Recover, Inc. v. Georgia Bd. of Nat. Resources, 466 S.E.2d 197 (Ga. 1996).

Cited 27 times | Published | Supreme Court of Georgia | Jan 22, 1996 | 266 Ga. 253, 96 Fulton County D. Rep. 365

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Bacote v. Wyckoff, 310 S.E.2d 520 (Ga. 1984).

Cited 24 times | Published | Supreme Court of Georgia | Jan 5, 1984 | 251 Ga. 862

...In order for the possession to have the effect of notice, it must be actual, open, visible, exclusive, and unambiguous. McDonald v. Dabney, 161 Ga. 711 (132 SE 547) (1929). "He who takes with notice of an equity takes subject to that equity." OCGA § 23-1-16 (Code Ann....
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Rector of Christ Church v. Bishop of Episcopal Diocese of Georgia, Inc., 718 S.E.2d 237 (Ga. 2011).

Cited 10 times | Published | Supreme Court of Georgia | Nov 21, 2011 | 290 Ga. 95, 2011 Fulton County D. Rep. 3631

...nd must give effect to all equitable rights of the other party respecting the subject matter of the action." • OCGA § 23-1-12—"The equity of a party who has been misled is superior to that of the person who willfully misleads such party." • OCGA § 23-1-16—"He who takes with notice of an equity takes subject to that equity." • OCGA § 23-1-23—"Where the rules of construction will allow, equity seeks always to construe conditions subsequent into covenants and to relieve against forfeitures...
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Cernonok v. Kane, 627 S.E.2d 14 (Ga. 2006).

Cited 8 times | Published | Supreme Court of Georgia | Feb 27, 2006 | 280 Ga. 272, 2006 Fulton County D. Rep. 581

...notice of the *16 Cernonoks' claim to the Alley, and, as such, his deed to 299 Peters Street could not transfer any portion of the Alley to him as a matter of equity. In making this equitable claim on appeal, the Cernonoks exclusively rely on OCGA §§ 23-1-16 and 23-1-17. OCGA § 23-1-16 provides that one who takes property with notice of an equity takes the property subject to that equity....
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Reddick v. State, 911 S.E.2d 638 (Ga. 2025).

Cited 5 times | Published | Supreme Court of Georgia | Jan 28, 2025 | 321 Ga. 73

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Nashville Restaurant Mgmt., LLC v. Gwinnett Cnty., 706 S.E.2d 451 (Ga. 2011).

Cited 1 times | Published | Supreme Court of Georgia | Feb 28, 2011 | 288 Ga. 664, 2011 Fulton County D. Rep. 398

...These procedural requirements of the Civil Practice Act are not abrogated by OCGA § 23-1-17, [7] cited by the County, which addresses the scope of an individual's notice of an equity in order to determine who takes subject to that equity. See OCGA § 23-1-16....
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State v. Hylton, 914 S.E.2d 295 (Ga. 2025).

Published | Supreme Court of Georgia | Mar 18, 2025 | 321 Ga. 292