Carl W. and Barbara H. Patterson - Page 13

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          October 19, 1990 to November 19, 1990, because he thought he had            
          some potential financing options.  Subsequently, when petitioner            
          was unable to meet the November 19, 1990 deadline, and after he             
          requested another extension, petitioner was cautioned by Mr.                
          Boyd.  Mr. Boyd advised petitioner that Mr. Suiter was reluctant            
          to extend the Earnest Money Contract because he was unsure that             
          petitioner would be able to finance the purchase.  Mr. Boyd                 
          observed that Mr. Suiter only agreed to extend the closing date             
          because petitioner "insisted" that he could close by December 19,           
          1990.  Thus, we are not convinced that it was Mr. Suiter who                
          misled petitioner into thinking that financing was obtainable for           
          the purchase of Skylane Apartments.                                         
               We also find that petitioner had no reasonable prospect of             
          recovering the $55,000 based on the allegations set forth in Mr.            
          Trueheart's letter dated December 20, 1990.  In his letter, Mr.             
          Trueheart alleged that Mr. Suiter provided petitioner with                  
          inaccurate information concerning Skylane Apartments.                       
               The record clearly demonstrates that Mr. Suiter specifically           
          disclaimed warranties with respect to his records.  Both addenda            
          to the Earnest Money Contract advised petitioner that he should             
          not rely on the seller's records but should perform his own                 
          independent analysis of Skylane Apartments.  For example, the               
          Second Addendum stated:                                                     
               SELLER IS CONVEYING THE PREMISES AS IS WHERE IS.                       
               ALL WARRANTIES OF EVERY KIND WITH RESPECT TO THE                       
               PREMISES, THE FINANCIAL CONDITION OF THE PREMISES,                     
               THE BOOKS AND RECORDS OF THE SELLER, PROFIT AND LOSS                   



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