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Remedies Keyed to Kovacic-Fleischer, 8th
Donovan v. Bachstadt
Citation:
453 A.2d 160 (1982)Facts
On January 19, 1980, Carl Bachstadt entered into a contract to sell residential property to Edward and Donna Donovan for $58,900. The contract required a deposit of $5,890, an additional $9,010 cash at closing scheduled for May 1, 1980, and a purchase money mortgage of $44,000 for thirty years at thirteen percent interest, later reformed to 10.5%. The contract, prepared on a standard realtor form, specified that title would be marketable and insurable by a reputable title insurance company. Bachstadt had constructed a house on property he believed he owned through Joan Lowden, who had acquired the land from Middletown Township in a tax foreclosure sale. However, a title search revealed that legal title remained in Anthony and Jane Mettrich because the township had inadvertently failed to foreclose on these particular lots. Despite obtaining a judgment for specific performance with the reformed interest rate, Bachstadt could not cure the title defect. The Donovans subsequently purchased another home with mortgage financing at 13.25% interest and sought damages for the interest rate differential and other losses.
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