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to obtain legal title at any time by paying the balance of the
full purchase price.
The principal burdens of ownership the option agreement
shifted from petitioners to the Sopers were the burdens of
maintaining the property and paying property taxes. The
agreement is silent as to who bore the risk of loss of the Blue
Lake residence. The agreement required petitioners to maintain
fire insurance on the residence. The Sopers did not obtain title
or hazard insurance for the property. We conclude that
petitioners bore the risk of loss to the property.
The Sopers were in possession of the Blue Lake residence
when they signed the option agreement. This was a continuation
of their leasehold, which the Sopers had under the August 5,
1988, lease agreement. Thus, the benefit of possession did not
pass to the Sopers under the option agreement. The agreement is
silent as to whether the Sopers could make improvements to
the Blue Lake property without petitioners' consent. After
petitioners and the Sopers signed the option agreement, the
Sopers could obtain legal title at any time by paying the
outstanding balance.
In summary, the Sopers did not: (a) Bear the risk of loss
of the property; (b) have the obligation to pay assessments and
charges against the property; or (c) have the responsibility
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