Melvin

BMP Properties (BMP) claims the trial court erred in concluding loans it made as part of a real estate trade were purchase money obligations, thus preventing BMP from seeking a deficiency judgment under Code of Civil Procedure section 580b. BMP asserts the court, in so concluding, improperly relied upon two facts. First, because some of the funds advanced were not used to satisfy the purchase price, BMP argues the court cannot classify the obligations as purchase money. Second, because the land trade and loan agreement were handled by different escrows, BMP argues the court erred in concluding the two escrows were part of a single transaction for the sale of real property. For the reasons set forth below, we affirm the judgment of the trial court.

Facts

Robert J. Reiminger (Reiminger) and Roy S. Melvin (Melvin) owned a piece of property in San Diego. George and Evelyn May (collectively May) also owned a piece of property in San Diego. These individuals desired to dispose of these properties, hoping to move up in their investments. BMP was the developer and owner of Monroe Villa Condominiums—a 14-unit complex in San Diego. Due to cash problems, BMP wished to sell off its…