Armstrong v. Lovelace

On September 22, 1976, Sonya Lovelace entered into an earnest money agreement to sell certain acreage in Deschutes County to the plaintiffs, Mr. and Mrs. Wallace Armstrong. On November 21,1976, Mrs. Lovelace executed a bargain-and-sale deed to the land to Robert Lovelace, her brother-in-law. The deed was intended as a mortgage to secure a new $4,000 loan from Robert to his brother Elwood Lovelace, Sonya’s husband, as well as a preexisting $1,000 loan to Elwood made on October 25, 1976. When plaintiffs thereafter demanded completion of the sale of the property to them under the earnest money…