Roberts v. Parker

BRAY, J. Plaintiff appeals from that portion of a judgment adjudging proper a certain deduction by defendants in the purchase price of real property and fixing a certain date as proper for the proration of taxes and interest.

Questions Presented

1. Under the agreement of sale did seller agree to pay sewer bonds assessment ?

2. What was the proper date for closure of escrow to fix date for proration of interest and taxes?

[142]Evidence

March 3, 1956, the parties entered into a written agreement in which plaintiff agreed to sell and defendants to buy plaintiff’s interest in approximately 83% acres of land in Sacramento County. As plaintiff merely had options to purchase the property requiring the consents of the optioners to any sale by plaintiff, the agreement required these consents to be obtained. It also required the approval of the Public Utilities Commission for the use of Mills Park Road or Drive as a public crossing. All necessary documents and purchase price were to be placed in escrow with a certain title company. Escrow was to close within 45 days after receipt of Public Utilities Commission approval of the grade crossing, but in no event later than six months from date of agreement. A certain order of the Public Utilities Commission was issued March 13. Plaintiff contends that this order started running the 45-day period in which the escrow was to be closed, and within that period placed in escrow all documents required of him. May 22, a second order of the Public Utilities Commission was issued. Defendants contend that the 45-day period did not commence to run until this date. May 16, assessment for the construction of the Rancho Cordova sewer plant became a lien on the property. . July 6, defendants placed in escrow the purchase price, less, however, the sum of $16,059.91, the amount of said lien, and instructed the title company to prorate taxes and interest as of July 6, 45 days after the second Public Utilities Commission order. Plaintiffs refused to allow the escrow to close, claiming that defendants were liable under the agreement for the sewer assessment, and that the proper proration date was April 27, 45 days after the first Public Utilities Commission order. The parties then entered into an agreement permitting the sale to be completed, but reserving for court determination the propriety of the deduction for sewer liens and the question of the proper proration date.