Bossi v. Whalen
Decision Date | 05 February 1985 |
Citation | 19 Mass.App.Ct. 966,473 N.E.2d 1167 |
Parties | Arnold L. BOSSI v. Karlene WHALEN et al. 1 |
Court | Appeals Court of Massachusetts |
Albert I. Gould, Clinton, for plaintiff.
Willie R. Brown, Harvard, for defendants.
Before GREANEY, C.J., and ROSE and DREBEN, JJ.
RESCRIPT.
Bossi, the seller of a single family dwelling under a purchase and sale agreement, appeals from the dismissal of his complaint following the allowance of the buyers' motion for summary judgment. He had sought specific performance and damages for the buyers' alleged breach of the agreement. The buyers claim that there is no genuine issue of fact and that the agreement automatically terminated because the buyers did not, in accordance with a mortgage contingency clause of the agreement, obtain a satisfactory mortgage commitment from a bank before a specified date. We conclude that the material before the judge was insufficient to allow the buyers' motion for summary judgment.
The following facts appear from the affidavits and other material. On March 30, 1983, Bossi, as seller, and Whalen and Pierce, as buyers, signed a purchase and sale agreement for Bossi's house. The agreement was made subject to two conditions, both contained in paragraph 29 of that document. Paragraph 29 in relevant part provides:
The closing was to take place on June 1, time being of the essence.
The controversy arose because the mortgage commitment obtained by Whalen and Pierce required the sale of both their houses before the closing. Although Whalen's house was sold prior to June 1, Pierce's house was not.
On April 26, the prospective mortgagee apparently sent to McNiff Realty, 2 the broker, a copy of the mortgage commitment terms. Neither party said anything further about the terms of the mortgage until May 24. On that day the buyers' lawyer informed Bossi's lawyer that no closing would occur until Pierce sold his house. Bossi by affidavit stated that he then offered "to extend the contract of sale to allow them more time to sell their second home even though [he] could not agree to this new contingency." His affidavit also indicates that McNiff offered the defendants an interest-free loan to enable them to purchase Bossi's house. Affidavits from McNiff, who was also acting as broker for the sale of Pierce's house, and from another realtor state that Pierce rejected without counter offer two offers for his house for over $70,000 before June 15. 3 Pierce's affidavit claims he was willing to accept any reasonable offer.
The parties' obligations which are here relevant rest largely on the mortgage contingency clause. That clause may be viewed as containing two conditions, one relating to the terms of the mortgage and the other relating to the time for obtaining the mortgage commitment. The provision making the sale subject to the buyers' obtaining a $115,000 mortgage at "current rates and terms" was inserted in the contract for the benefit of the buyers, and as such could be waived by them. deFreitas v. Cote, 342 Mass. 474, 477, 174 N.E.2d 371 (1961). As pointed out in that case, "It was obviously to the buyer[s'] advantage that they be released from [their] obligations in the event that [they] should be unable to procure financial assistance." Ibid. See also Cherry v. Crispin, 346 Mass. 89, 92, 190 N.E.2d 93 (1963). On the other hand, the April 28th deadline for the obtaining of the mortgage commitment was inserted for Bossi's benefit because he was in the process of buying another house and needed a buyer with a mortgage commitment. See Loda v. H.K. Sargeant & Associates, 188 Conn. 69, 77, 448 A.2d 812 (1982). It provided him with a date by which he could know whether the buyers would have financing and would be bound to go through with the purchase. 4 Since that deadline was inserted for Bossi's benefit, it could be waived by him.
While the mortgage contingency clause permitted the buyers to withdraw if they did not obtain a commitment by April 28, that clause did not give them the right to vary unilaterally a material term of the purchase and sale agreement. To modify the requirement that only one house had to be sold, the buyers needed Bossi's consent. Even assuming that Bossi could be charged with notice to McNiff (the realtor) 5 of the bank's commitment letter, which required the sale of both houses, this knowledge, in the face of the silence of Whalen and Pierce, was insufficient, in itself, to modify the agreement. Since Whalen and Pierce...
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