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Escrow Deposits
On November 2, 1989, pursuant to the Agreement, petitioners
opened escrow No. 607137-JH with Chicago Title Insurance Co. as
“Escrow Holder”. The closing date for escrow was May 1, 1990.
Also on November 2, CDC deposited a $75,000 cashier’s check as
the Initial Deposit referred to in the Agreement with Escrow
Holder. On that same day, Escrow Holder released the $75,000
cashier’s check to petitioners.
On November 7, 1989, petitioners purchased a certificate of
deposit in the amount of $100,000. The funds used to purchase
the certificate of deposit consisted of the $75,000 petitioners
received from Escrow Holder and $25,000 from petitioners’
personal checking account.
Pursuant to the Agreement, on November 17, 1989, CDC
deposited the $425,000 Additional Deposit with Escrow Holder. On
that same day, the $425,000 was released to petitioners by wire
transfer to petitioners’ personal account. Before the wire
transfer of the Additional Deposit, the balance in the account
was $118,420.13. On November 21, 1989, petitioners disbursed
$500,000 from their account and used this money to pay down the
mortgage on their residence in Huntington Beach.
On May 2, 1990, CDC exercised their right to extend escrow
and delivered the $200,000 Extension Payment to Escrow Holder.
The closing date was extended until September 1, 1990. Escrow
Holder released the $200,000 Extension Payment to petitioners by
delivering a check to petitioners’ attorney Mr. Jay Steinman (Mr.
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Last modified: May 25, 2011