Opinion ID: 901213
Heading Depth: 1
Heading Rank: 6

Heading: Offer of payment

Text: [¶ 11.] On April 3, 2000, McKinnies' attorney sent a letter to Adrian's attorney communicating McKinnies' intent to pay the amount due, it read: April 3, 2000 This letter is to serve as formal notice of Mr. & Mrs. McKinnie's intent to exercise their option pursuant to the agreement between the parties dated October 10, 1997 with a purchase amount of $122,327.38. I expect to have the funds in my office trust account by Monday, April 03, 2000, after which I will contact you and schedule a time to meet with you at your office. Please prepare a Warranty Deed and Certificate of Real Estate Value for Mr. Adrian's signature and, since Mr. Adrian is a married man, I would ask that the Warranty Deed contain homestead waiver language thereby negating the necessity of his wife having to sign the documents. On April 7, 2000, Adrian's attorney responded alleging that McKinnies were in default and demanding payment within 30 days. [7] The letter read: ... This letter serves as notice of default of the terms and conditions of the Lease Agreement and Option to Purchase.... If the default is not cured within 30 days from the date of this notice, the Lease Agreement and Option to Purchase terminates by operation of the terms of the contract.... The contract provides that he must pay the sum of $122,327.38, plus pro rated rental payments within 30 days of the date of your letter. Anticipating that Mr. McKinnie will be making that payment, and thereby rendering the default moot, I have sent a deed to Mr. Adrian for his execution.... [8] Adrian's attorney wrote another letter April 24, 2000 stating that if the purchase was not closed on or before May 3, 2000, the lease agreement and option to purchase will be terminated on May 7, pursuant to the terms of the contract and my Notice of Default dated April 7. On May 1, 2000, McKinnies' attorney responded that the loan payoff was delayed because of computer problems at the title company but that payoff would occur as soon as the title policy issued. The letter responded as follows: This letter is to follow-up on our telephone discussion of last week wherein I indicated to you that we were prepared to close on the loan necessary in order to pay-off the amount owing to Mr. Adrian, however due to computer problems with Custer Title Company, we are unable to obtain a lender policy in time to close prior to May 3rd.... As I have indicated, the McKinnies have a lender who has escrowed the funds with attorney Tim Vander Heide and all parties are prepared to close the loan once the title policy has been issued.... It would appear very imprudent for Mr. Adrian to refuse in excess of $122,000.00 and gamble on a default that is thin at best and has a minimal chance of success on the merits.... I urge you to visit with your client and carefully weigh the economics of this situation and encourage him to agree to an extension in order to allow the loan to close and Mr. Adrian to receive the monies that are due to him.... On May 8, 2000, Adrian's attorney wrote to McKinnies that Adrian was serving a Notice to Quit. It further stated that Mr. Adrian will not allow Mr. McKinnie to exercise the option to purchase and will proceed to evict ... It is clear that the sole basis for Adrian's refusal to release the deed was that he was acting under his belief that the contract was a lease/purchase agreement rather than an equitable mortgage agreement and that McKinnies were required to pay the balance within the 30 days.