Enloe

FACTS

James and Margaret Enloe owned a single family residence in Templeton. They agreed to sell it to Casey Lee Kelso and Joseph R. Jaeger (hereafter collectively Kelso) for $1.9 million. The Enloes agreed to carry back a second deed of trust in the amount of $93,750. For reasons not disclosed, Kelso's lender, Washington Mutual, decided to fund its portion of the purchase price with

1 All statutory references are to the Code of Civil Procedure. two loans secured by two deeds of trust. This would make the sellers' proposed second deed of trust, a third deed of trust. Washington Mutual refused, however, to fund its loans if there would be a third deed of trust in favor of the sellers. In response to Washington Mutual's refusal, the Enloes and Kelso agreed that the Enloes would carry back a third deed of trust to record ''[i]mmediately [a]fter" the close of escrow. They amended escrow instructions to delete reference to the sellers' carry-back loan. Prior to close of escrow, Kelso executed a note in favor of the Enloes secured by a deed of trust on the subject property in the amount of $93,750. Margaret Enloe tendered to escrow a personal check to…