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Seller shall spend as much time as practicable and reasonable for
an orderly transfer and disposition of various cases". That the
purchase agreement between petitioner and the law partnership was
executed on December 10, 1985, is further evidenced by the Carter
purchase agreement, which is dated December 15, 1985. That
agreement does not list petitioner as a member of the law
partnership. Based on the evidence as a whole, we have found
that the correct date of the purchase agreement is December 10,
1985.
Therefore, if as petitioner contends the purchase agreement
transferred his interest in the Third Street property, the
transfer occurred on December 10, 1985. If the property was not
transferred until the execution of the quitclaim deed, the
transfer occurred in December 1987.
It is well settled that State law determines the nature of a
taxpayer's interest in property. Aquilino v. United States, 363
U.S. 509, 513 (1960). Since the property at issue is located in
North Dakota, that State's law is applicable.
Under North Dakota law, an interest in real property can be
transferred only by operation of law or by an instrument in
writing, subscribed by the party disposing of the property or by
his agent. N.D. Cent. Code sec. 47-10-01 (1978). The requisites
of an executory contract for the purchase and sale of real
property, also known as a contract for deed, are that there
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