- 6 - company for which petitioner worked as a broker;3 $600,000 to be deposited in escrow; and $4.1 million, to be paid from the proceeds of a first mortgage nonrecourse loan to be obtained by Coastal from Canada Life Assurance Co. (Canada Life). The $4.1 million amount of the mortgage loan was the maximum that Canada Life was willing to lend on the security of the Mall, based on Canada Life's valuation of the Mall at approximately $5.5 million and use of a 75-percent maximum loan-to-value ratio. Also on December 17, 1987, petitioner, using a preprinted HGM commission agreement form, wrote a commission agreement between Pecaris and HGM for payment by Pecaris of $100,000 to HGM for effecting the sale of the Mall from Pecaris to Coastal. The commission agreement authorized "ESCROW AGENT * * * by irrevocable assignment, to disburse to HGM HILLTOP, REALTORS a check in the amount of $100,000.00". Petitioner signed this agreement as a partner of Pecaris; the HGM signature line was left blank. Petitioner, as partner in both Coastal and Pecaris, was on both sides of the negotiation of the purchase agreement and the fixing of the purchase price. Messrs. Boyas and Spillas and petitioner signed the purchase agreement on behalf of Pecaris, 3There is no evidence in the record that the earnest money was ever placed in escrow or any indication of the nature or extent of the ownership or employment relationship between petitioner and HGM.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011