JTB Properties, LLC. v. Joseph Zwillenberg

CourtMissouri Court of Appeals
DecidedMay 25, 2021
DocketWD84001
StatusPublished

This text of JTB Properties, LLC. v. Joseph Zwillenberg (JTB Properties, LLC. v. Joseph Zwillenberg) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JTB Properties, LLC. v. Joseph Zwillenberg, (Mo. Ct. App. 2021).

Opinion

In the Missouri Court of Appeals Western District

 JTB PROPERTIES, LLC.,   Appellant,  WD84001 v.  OPINION FILED:  JOSEPH ZWILLENBERG, ET AL.,  MAY 25, 2021  Respondents.   

Appeal from the Circuit Court of Jackson County, Missouri The Honorable James Dale Youngs, Judge

Before Division One: Anthony Rex Gabbert, Presiding Judge, Edward R. Ardini, Jr., Judge, Thomas N. Chapman, Judge

JTB Properties, LLC (“JTB” or “Purchaser” or “Buyer”) appeals the partial summary

judgment and denial of a cross motion for summary judgment in the Jackson County Circuit Court.

In three points on appeal, Purchaser argues the trial court misapplied the law and ignored genuine

issues of material fact. The judgment is reversed and remanded.

Facts

In January 2019, JTB entered into a contract to purchase real property from Joseph

Zwillenberg and Julie Jackson Zwillenberg (“the Zwillenbergs” or “Sellers”). Among the

contract’s other provisions was a requirement that Purchaser order a title insurance commitment to insure that good and marketable title would be passed to Purchaser at closing subject to

permitted exceptions. Also part of the contract was a provision that Purchaser notify Sellers of its

objections to any exceptions to title contained in the title commitment. This same provision stated

that if Purchaser did not timely disapprove of exceptions to title shown in the title commitment,

the exceptions would be deemed waived, and treated as permitted exceptions to the title conveyed

by Sellers. The contract identified Assured Quality Title Insurance Company of Kansas City,

Missouri as the agreed upon title company both for purposes of issuing an owner’s title insurance

policy to Purchaser and to act as the closing escrow agent. The contract provided that the fee for

issuance of the title commitment and for the premium for issuing an owner's title policy were to

be paid by the Sellers.

Purchaser obtained and delivered to Sellers a title commitment that identified on Schedule

B, part II fifteen exceptions to title. Purchaser did not object to any of these exceptions in the title

commitment, and as a result, all fifteen exceptions identified in the title commitment became

permitted exceptions to title as provided by the parties’ contract.

The contract described a closing procedure which required, among other things, that Sellers

“shall deposit [their] duly executed special warranty deed in form and substance approved by

Buyer and the Title Company, conveying good and marketable title” to the property described in

the contract “warranting title to be free and clear of any liens and encumbrances, except the

permitted exceptions . . . .”

On March 21, 2019, Sellers sent Purchaser a letter indicating Sellers were terminating the

contract. On April 14, 2019, Purchaser responded in writing that such termination was not

permissible under the contract, the contract was still in effect, and closing would occur as

scheduled on May 3, 2019.

2 On May 3, 2019, Sellers provided the title company with an unexecuted special warranty

deed, along with a closing instructions letter which read:

Dear Jim:

As you are aware, this firm represents the Transferor with respect to the Transferor’s sale of the Property set forth and described in the Title Commitment to JTB under that certain Contract for Sale of Real Estate dated January 14, 2019, of which you have copy (the “Contract”). You have agreed to act as closing escrow agent for consummating the transfer of the Property by the Transferor.

The Transferor has delivered or will deliver to you under separate cover the following original documents executed by Transferor:

1. Special Warranty Deed conveying the Property to the Transferee, in the form attached hereto (the “Deed”); and, 2. Form 1099, executed by Transferor; and, 3. Seller’s Settlement Statement, executed by Transferor.

The documents described above shall collectively be referred to herein as the “Transferor Documents”.

You are hereby instructed to hold each of the delivered Transferor Documents in escrow in accordance with the instructions contained herein. Upon receipt of each of the following, you are authorized to record the Deed:

1. You are in receipt of all of the Transferor Documents and all documents from Transferee that are required by the Contract and you to close the transaction. 2. You have received the Purchase Price and all other amounts due from Transferee that are necessary to remit the balance due to Seller set forth in Seller’s Settlement Statement. 3. I have provided you with written authorization, via electronic mail, to close this transaction.

After closing, please provide me with file-stamped copies of all of the recorded Deed, and copies of all signed documents.

In the event that you are unable to comply with these instructions no later than 3:00 p.m. CST on the Closing Date, you are instructed to take no action hereunder and to contact the undersigned immediately for instructions.

The unexecuted special warranty deed that was referenced in and attached to Sellers’ closing

instructions letter read, in part, as follows:

3 This ____ day of May, 2019, JOSEPH ZWILLENBERG and JULIE JACKSON ZWILLENBERG, husband and wife ("Grantor"), for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration to it paid by JTB Missouri limited liability company ("Grantee"), their heirs and assigns, the receipt and sufficiency of which are acknowledged, has BARGAINED, SOLD, CONVEYED AND CONFIRMED and by these presents does BARGAIN, SELL, CONVEY AND CONFIRM unto the Grantee that certain real estate located in the County of Jackson, State of- Missouri (the “Property”), described as follows: … subject, however, to those matters set forth on Exhibit “A” attached hereto and all zoning laws and easements and rights-of-way of record, if any.

Exhibit A identified seven matters as to which title conveyed by the Special Warranty Deed would

remain subject:

1. All assessments and taxes for the year 2019 and all subsequent years, none now due and payable. 2. Easement granted to the State of Missouri, acting by and through the State Highway Commission filed June 30,1961 as Document No. B382547, over a portion of the premises in question, as more fully therein. 3. Utility Easements reserved by Kansas City over that part of the premises in question in vacated alley as set forth in Ordinance filed August 26,1965 as Document B526760 in Book B5828atPage53. 4. Easements, if any, for public utilities installed in, under or upon the vacated alley prior to the vacation thereof, and for which no notice appears in the Office of 5. Subject to the interest of the public in and to any portion of the premises in question in streets or 6. Rights of parties in possession under unrecorded leases. 7. Judgments and Tax Liens, if any, against the party to be insured, JTB Properties, LLC.

The seven matters noted on Exhibit A to the unexecuted special warranty deed were items seven

through thirteen on Schedule B, part II of the title commitment, and were thus “permitted

exceptions” pursuant to the terms of the contract as they were not disapproved by Purchaser. Items

one through six, and items fourteen and fifteen, on Schedule B, part II of the title commitment

were not listed on Exhibit A of the unexecuted special warranty deed, even though they were

permitted exceptions to title as they had not been disapproved by Buyer.

4 Schedule B, part I of the title commitment described the means by which exceptions two

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JTB Properties, LLC. v. Joseph Zwillenberg, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jtb-properties-llc-v-joseph-zwillenberg-moctapp-2021.