No. 380 Pittsburgh, 1981, Appeal from the order of the Court of Common Pleas, Civil Division, Allegheny County, at No. GD 80-31096.
Walter Faderewski, McKeesport, for appellants.
James Kletter, Pittsburgh, for appellees.
Wieand, Johnson and Montemuro, JJ. Wieand, J., concurs in the result.
[ 299 Pa. Super. Page 526]
This action concerns the conflicting claims to real property made by a lessee with an option to purchase and the holder of a judgment against the property entered prior to signing of the lease. We find, as the lower court did, that the Sheriff's sale held on the judgment extinguished the lessee's rights to possession and the option to purchase. The facts are as follows:
On October 11, 1976, lessors Arthur and Carmella Picone made an agreement as to the property located at 3005 Valley Ridge Road, Allegheny County, Pa. with lessees Terrance L. and Virginia L. Mowat, defendants and counter-plaintiffs below and appellants herein.
The terms of the agreement provided for rental of $350 per month, for five additional yearly leases at the same rent, and for a ninety-day notice of intent to exercise the lease each year. Additionally, at any time during the terms of the lease, the lessees could purchase the property for $55,000, and were to receive a credit of $2,100 per year (or $175 per month) toward the purchase price of $55,000.
Prior to the time of the signing of the lease, a judgment had been entered against the property and had been recorded in the prothonotary's office on August 28, 1975 in favor of the Northside Deposit Bank.
On November 12, 1976, approximately one month after the Agreement for lease and purchase had been signed, the above lien was assigned to Anthony J. and Jessie Picone, the plaintiff-counterdefendants below and appellees herein. Appellees are brother and sister-in-law respectively of the lessors.
The appellees moved on the lien in July of 1980. The appellants were given notice of the Sheriff's Sale, which was held on July 7, 1980. A Sheriff's Deed was issued to the appellees on August 8, 1980. By letter of September 25, 1980, the appellees requested that the appellants vacate the property, but this the appellants refused to do.
[ 299 Pa. Super. Page 527]
Appellees then filed this action to quiet title, and the appellants filed answer, new matter and counterclaim, alleging that the lessors and the appellees conspired to deprive them of their bargain, and that the lessors were agents of the appellees. Appellants also requested specific performance of the purchase option of the lease. Appellees responded with preliminary objections, and the new matter and counterclaim ...