This group (Sellers) represented that they owned a lot and improvements containing a restaurant. Relying upon their representations, Buyers negotiated a lease / purchase contract with a closing in two years. Buyers spent $100,000 renovating the building and $250,00 in total capitalization costs. They established a very successful business. Upon closing, Sellers would not provide a title commitment as required in the Contract for Purchase and Sale of Commercial Real Estate. Buyers had O&E Report done by area title company. The report reflected that the property was encumbered by liens exceeding the purchase price making title unmarketable.
The O&E Report reflected that the "Lot" that was the subject of the purchase in the contract did not legally exist, nor had an application for a minor subdivision be filed by Sellers. Buyers filed suit but Sellers hired attorney that was the former law partner of the presiding judge. Judge Pattie Swift was paid off through attorney for Sellers. The Colorado Division of Real Estate ruled in favor of Buyers. Subsequently, Sellers filed a lien on Buyers personal property in retaliation, despite the fact that Buyers were not individual participants in the transaction.
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