-11-
On October 5, 1988, petitioners, Shumin, and IEC executed a
document entitled "Acquisition of Exchange Property Instructions"
that designated 29 Hastings as the exchange property for the
Detroit properties and the 8th Street property. IEC agreed to
purchase 29 Hastings for $540,000.
Escrow closed for Shumin's purchase of 29 Hastings on
October 21, 1988. The proceeds from Shumin's $356,200 Home
Savings of America loan were remitted to Standard Pacific.
On December 15, 1988, escrow closed on Shumin's sale of
29 Hastings to petitioners (through IEC), and she received
$180,094 from Merrill Lynch Escrow. Petitioners assumed the Home
Savings of America loan on 29 Hastings. The proceeds from the
sales of the Detroit properties and the 8th Street property
resulted in a balance of approximately $219,516.78 in
petitioners' escrow account. Approximately $184,000 of these
funds was needed for the purchase of 29 Hastings. Instead of
receiving the excess proceeds from the escrow, petitioners, under
the terms of the exchange agreement, deposited the excess
proceeds to be used to pay down the mortgage they assumed on 29
Hastings. On December 21, 1988, Home Savings of America received
$36,335.11 from Merrill Lynch Escrow on behalf of petitioners to
be applied to reduce the mortgage on 29 Hastings. Home Savings
of America confirmed, in a letter to petitioners dated
February 1, 1989, that petitioners' December 20, 1988, payment
was received on December 21, 1988, and was applied to the
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