Cooke v. Goethals

157 Wn.App. 1067 (2010)

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Nature of the Case

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Facts

P and D were longtime friends. Ps talked with the D's son Don, a realtor, about buying property in the Lake Tapps area. Don said that Ds had property they wanted to sell that might be suitable. Ds offered to sell the property for $ 60,000. Ps agreed to the price but were unable to obtain financing until the Ds resolved a lot line adjustment issue. Ds assured Ps that the lot line adjustment would not be a problem, the parties agreed to a 30-year amortization of the purchase price to establish the Ps' monthly payment. The parties further agreed to treat their arrangement like a sale on a real estate contract with a balloon payment in five years, after the Ps obtained a loan. There was no written agreement reflecting any of these terms. Ps attempted to resolve the lot line problem, but county officials said it was Ds' responsibility. Ds agreed to resolve it. Ps continued to make their monthly payments. They also removed garbage from the property and rebuilt the front of the garage, spending $6,000 to $7,000. In December 2007, a Federal Express truck accidentally ran into the garage, knocking out the power. Ds offered suggestions to the Cookes about how to recover the cost of repairs but made no attempt to take care of the problem. In May 2008, Ps found loggers on the property clearing trees and confronted Don, who apologized and said that the trees should not have been cut down. Ps made monthly payments from May 2001 until Ds asked to meet with them in October 2008. Ds stated that they had recently obtained the lot line adjustment and would now sell the property for $100,000. Ds added that a neighbor was interested in buying the property for $130,000 to $140,000 but that they would give Ps a discount. Ps responded that Ds should sell the property to their neighbor for $130,000 to $140,000, keep the $100,000 they were willing to accept from Ps, and pay the difference to Ps to offset their damages and losses. Ds served notice on Ps to remove their personal property by December 31, 2008. Ps sued Ds seeking specific performance of their oral agreement to buy property from Ds. Ds moved for summary judgment. Don stated that Ps had offered the property to Ps for $65,000 but that Ps could not afford that price and had asked to rent the property for $350 per month. Ds paid property taxes throughout Ps' tenancy. Ps insisted they wanted to purchase and the only thing stopping them was Ds' failure to obtain the lot line adjustment. Ps had noted on his checks to Ds that the payments were for “mortgage.” Todd Bohon, a longtime friend of Ps, stated that he heard Ps taking with Ds in 2001 about their plans for the property and knew that Ps wanted to purchase it. He also heard the parties discussing the lot line issue that had to be resolved before Ps could get financing. The trial court granted the Ds' motion for summary judgment. Ps appealed.