Barnes v. Marvaso
Defendant Jane Marvaso appeals from a judgment of the trial court in which the court created an equitable mortgage in her favor in the amount of $189,350 on real property located on Enders Avenue in San Diego (Property). In 2000, Marvaso agreed to sell the Property to Michael Lowe for a total of $277,500, which Lowe was to pay over a five-year period. The unconventional contract (the contract) between the parties created a seller-financed transaction pursuant to which Lowe would make a $15,000 down payment, pay 60 monthly installments of between $1,200 and $1,300, and at the end of five years, make a balloon payment for the balance of the purchase price. The contract also provided that Lowe would take immediate possession of the Property and that Marvaso would convey a 90 percent interest in the Property to Lowe. In 2002, Marvaso executed a grant deed in which she conveyed a 90 percent interest in the property to Lowe and retained a 10 percent interest. Finally, both parties indicated during oral argument that if this court concludes that Barnes is to retain his 90 percent interest in, and possession of, the property, the parties want the refinancing to occur as soon as possible so that Marvaso can receive the money due to her, and Barnes can receive the final 10 percent interest in the property. With this in mind, the trial court should set a reasonable time frame during which the parties are to commence and complete the refinancing of the property. The trial court should retain jurisdiction over this matter to monitor the status of the equitable remedy.
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