Carpenter v. Folkerts

Mr. and Mrs. Henry Folkerts appeal a decree of specific performance resulting from a lease-option contract for real property.

In 1975 the Folkerts (lessors) executed a lease-option agreement with Mr. and Mrs. Thomas Carpenter, Jr. (lessees) for approximately 62 acres of agricultural land. The contract provided for a yearly payment of $6,300 with an option to purchase at the end of 3 years for $95,000. Unknown to the Carpenters, the Folkerts had heavily encumbered the land. In addition to owing about $36,000 on their purchase of the property, the Folkerts acquired a $30,000 personal loan and a…