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The following documents were attached to the May agreements:
(1) A recourse promissory note for the July 2, 1984, installment;
(2) a recourse promissory note for the December 2013 installment;
(3) a $50,000 judgment note for each condominium providing for
enforcement by the sellers if the partnerships defaulted on
payment of the July 2, 1984, installment; (4) a deed of trust
encumbering each condominium as security for payment of the two
installment notes; (5) a special warranty deed for each
condominium; and (6) a quitclaim deed for each condominium.
Western States Title Co. was to hold and record the deeds and
close the escrow upon payment of the July 2, 1984, installment.
In the event of a presettlement default by the partnerships,
the agreement provided each seller with two remedies. First, the
seller would be relieved from all obligations in law and equity,
including conveying title, and the buyer would become a tenant at
will. In addition, the quitclaim deeds executed by the buyer
would be recorded by the escrow agent, and payments made by the
buyer would be retained by the seller as liquidated damages along
with the judgment note. Second, the seller could declare the
installment notes due, tender title to the buyer, and foreclose
under the laws of the State of Utah. In the event of the
seller's presettlement default, the buyer's sole remedy was to
terminate and rescind the agreement; and the seller was to return
all sums paid by the buyer to date along with 6-percent interest,
at which time the escrow agent would record the buyer's quitclaim
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Last modified: May 25, 2011