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of the amount due on the note, with interest of $10,000, 12
months after the closing date of the agreement. The balance was
to be amortized over 10 years and payable in equal monthly
installments of $6,598.85. The monthly payments were due on the
first of each month. The buyer would be in default if it did not
make the monthly payment by the 25th day of the month. If the
buyer defaulted, the seller could repossess the property subject
to a lien favoring the holder of the mortgage. The buyer was to
maintain hazard and liability insurance of $800,000 and name the
sellers as additional insureds on the policy.
The contract of sale was signed by Waldorf as president,
Godby as vice president, and Wiltzius as secretary.
As part of the contract, the buyer agreed to comply with all
Federal, State, and county laws, ordinances, codes, regulations,
and rules, including zoning and easement requirements and
building, fire, safety, and health codes. The buyer and seller
understood that it was important for the buyer to maintain House
of Babes' grandfathered status by continuously complying with
Seminole County rules and regulations.
Waldorf knew that the IRS was investigating House of Babes,
and he knew that House of Babes had corporate tax liability for
1(...continued)
does not affect our decision. There is testimony that the buyer
paid $250,000 in cash, which we disregard because the parties
stipulated that the buyer paid $179,387 in cash.
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Last modified: May 25, 2011