Leo and Alla Goldberg - Page 23

                                        -23-                                          
          was to expire June 3, 1991.  The Lease Option provided that the             
          monthly lease payments would equal "the principal, interest,                
          taxes, insurance and Association dues.  (NONE of which is to be             
          applied towards the purchase price.)"  Under the terms of the               
          Lease Option, the seller/optionor (petitioners) was to "keep                
          current the existing trust deed loans, taxes and insurance and              
          homeowners association dues during the entire option period to              
          the close of escrow."  Lee Wood (Mr. Wood) was to be provided               
          with the necessary documentation for purposes of tax deductions             
          related to 15 Hastings to be taken by Mr. Wood.                             
               On November 3, 1989, petitioners and the Woods signed a                
          two-page document entitled "Real Estate Purchase Option"                    
          agreement for the property located at 15 Hastings.  The Real                
          Estate Purchase Option was to expire June 1, 1991.  The terms of            
          the Real Estate Purchase Option were different than those                   
          contained in the Lease Option.  The Real Estate Purchase Option             
          did not provide for lease payments but instead stated that                  
          "optionees agree to pay all carrying costs in respect to the said           
          property for the duration of the term of this option period to              
          include:  principal, interest, taxes, monthly association dues,             
          any applicable insurance premiums; optionees further agree to               
          maintain the property in good repair".                                      
               Also on November 3, 1989, the Woods deposited $10,000 with             
          Escrow Masters as an option fee.  The option fee was available to           
          petitioners at any time following consummation of this option               
          agreement.  On December 1, 1989, petitioners withdrew the $10,000           



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