Thomas R. Jones - Page 11

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               Beneficial ownership has been characterized as when “the               
          buyer has the possession and use of the property to the complete            
          exclusion of the seller, subject only to the seller’s remedies in           
          case of default.”  County of San Diego v. Davis, 33 P.2d 827, 828           
          (Cal. 1934).                                                                
               Petitioner argues that under the terms of the agreement,               
          beginning in September of 1996 petitioner acquired equitable                
          ownership of the property.  Petitioner points out that he                   
          possessed the property, that after entering into the agreement he           
          began making larger payments to Peterson, and that he paid $5,000           
          to Peterson as well as property taxes on the property.                      
               We agree with respondent that the evidence does not                    
          establish that during 2000 petitioner was the equitable owner of            
          the property.                                                               
               Various benefits and burdens were retained by Peterson.                
          Peterson continued to pay insurance on the property and to pay              
          other liabilities as owner of the property.  Peterson made                  
          decisions relating to improvements on the property.                         
               We are sympathetic to petitioner, as the agreement did                 
          convey to petitioner some benefits and burdens of ownership.                
          However, given the facts before us, California courts would                 
          construe the agreement at issue as an option contract, not as a             
          purchase and sale contract.                                                 








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