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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.
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