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Property Keyed to Saxer
Barber v. Jacobs
Facts
Barber (Plaintiff) and his family planned to move from Toronto, Canada to Connecticut. Plaintiff and his wife viewed property owned by Robert and Linda Jacobs (Defendants) on April 19, 1994. They offered to purchase the property on May 25, 1994, and requested a wetlands inspection on the property. The parties entered into a purchase contract with a closing date of August 8, 1994. The contract included a mortgage contingency clause, which conditioned the transaction upon Plaintiff’s ability to secure a mortgage on the property. Plaintiff also paid a ten percent deposit in the amount of $327,000, which was held in escrow by Irwin K. Liu, Defendants’ attorney. Plaintiff applied for a mortgage from the Putnam Trust Company of Greenwich (Bank). The bank initially approved the loan but did not give Plaintiff a formal mortgage commitment. Subsequently, Robert Hartch, attorney to both Plaintiff and the bank, reviewed the property’s inland wetlands file and found that the property was in violation of agency regulations. Hartch found that the issue would be a serious obstacle to obtaining a loan, and disclosed this information to both Plaintiff and the bank. The bank reversed its loan approval and issued a denial. Hartch requested that Defendants return Plaintiff’s deposit. Defendants refused. Plaintiff filed an action for interpleader, seeking a determination of the rights to the deposit. The trial court found that Plaintiff made sufficient reasonable efforts to secure a mortgage.
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