Glenn v. Reese

Summary

The Utah Supreme Court held that a real estate purchase contract unambiguously allowed buyers to cancel based on an unfavorable appraisal obtained independently of a lender. The court further held that the buyers' first addendum was an unsuccessful offer to modify the contract, while their second addendum effectively canceled the contract under its evaluation provisions. The court remanded for entry of summary judgment and an award of attorney fees in favor of the buyers.

Holdings

1. The real estate purchase contract was unambiguous and could be interpreted as a matter of law.
2. Section 8's provision concerning tests and evaluations was broad enough to include an appraisal obtained by a self-financed buyer, and Buyers therefore had a contractual right to cancel upon dissatisfaction with that appraisal.
3. Addendum No. 3 was an offer to modify the contract, not a cancellation or notice of objections, and it became a nullity when Sellers failed to accept it.
4. Addendum No. 4 was a clear and unequivocal notice of intent to cancel that complied with Section 8.2 and cancelled the contract and Buyers' obligations under it.

Questions Presented

1. Whether the real estate purchase contract was ambiguous concerning Buyers' ability to cancel based on an appraisal obtained without a lender.
2. Whether the contract's provision concerning other tests and evaluations encompassed an appraisal obtained by a self-financed buyer.
3. Whether Addendum No. 3 was a cancellation, a notice of objections, or an offer to modify the contract.
4. Whether Addendum No. 4 validly cancelled the contract under the contract's evaluation and inspection provisions.
5. Whether Buyers were entitled to summary judgment and attorney fees.

Disposition

remanded