Scherer v. Nase

JOHNSON, Judge:

The owners of certain residential real estate, along with their real estate sales agent, appeal from a judgment on a nonjury verdict entered in favor of the prospective buyers. The judgment awarded the buyers the net amount of the hand money held in escrow after deducting certain amounts representing interest costs found to be due the owners.

We are asked to interpret the terms “completed mortgage application” and “responsible mortgage lending institution” as they appear in a mortgage contingency clause within a standardized form agreement for the sale of real estate. In…