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mortgage on the property, which balance was $106,000 at the time
the agreement was entered into.
In September of 1996, petitioner paid Peterson the $5,000
for the option to purchase the property. Beginning in September
of 1996 and continuing through 2000, petitioner also paid
Peterson $1,051 per month.
In a December 2, 1998, letter to petitioner, Peterson
referred to the property as “my property” and acknowledged that
he, Peterson, was still using the property as his address for the
purpose of receiving mail. Peterson consistently referred to the
agreement as an “option” agreement, and in September of 2001
Peterson wrote a letter to petitioner in which Peterson made it
clear that he understood that petitioner was not yet bound under
the agreement to purchase the property.
In 1999, Peterson considered refinancing the mortgage on the
property and so informed petitioner, telling petitioner that this
would “actually [result] in a savings to * * * [petitioner]
during * * * [the] option period.” Petitioner apparently wanted
to participate in the refinancing of the property. Petitioner,
however, did not respond when Peterson mailed to petitioner bank
disclosure documents, and the refinancing of the mortgage on the
property was never completed.
In connection with his efforts to refinance, Peterson
queried petitioner about the condition of the property and
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Last modified: May 25, 2011