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Free Books / Real Estate / American Law Of Real Estate Agency / | ![]() |
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Authority Conferred On Real Estate Brokers, Agents. Part 3 |
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This section is from the book "American Law Of Real Estate Agency", by William Slee Walker. Also available from Amazon: American law of real estate agency.
Where an agent is employed to secure a purchaser for real estate within a certain time, for certain commissions, he can not recover unless he furnishes a purchaser within that time. Ice v. Maxwell, 61 West Va. 9, 55 S. E. 899.
Laws of 1893, p. 161, provides that in cities of 300,000 inhabitants or more, any person who shall offer for sale any real property, without the written authority of the owner of such property, etc., shall be deemed guilty of a misdemeanor. Defendants, husband and wife, at plaintiff's request, delivered to plaintiff a written option prepared by defendants, whereby they agreed to sell certain property for a given price and on the day following, defendant's wife, the owner of the property, offered in writing to pay plaintiff a certain commission on a sale at the price named. Held, that the two writings, when construed together, authorized plaintiff to sell the property. Holbrook-Blackwell B. E. Co. v. Hartman, 128 Mo. App. 228, 106 S. W. 1115.
The ordinary authority of a real estate agent to sell land is simply to find a purchaser, he having no power to bind his principal by a contract of sale, unless it appears that it was intended to confer upon him such additional authority. Stem-ler v. Bass, 153 Cal. 79, 96 P. 809; Weatherhead v. Ettinger, 78 0. S. 104, 84 N. E. 598; Foss Inv. Co. v. Tier, 49 Wash. 446, 95 P. 1017.
Ordinarily a broker has no implied authority to buy or sell the property of another in his own name. Reed v. Light, 170 Ind. 550, 85 N. E. 9; Fort v. Cummins, 128 N. E. 624, - Ind. App. - .
Though the expression "to sell" is sometimes used in the sense of an executed contract of sale, or an agreement to sell, as defined by Civil Code, Sec. 1727, the expression, when used in a contract giving a real estate broker the exclusive right "to sell" real estate, has acquired a restricted meaning, and, standing alone, the words "to sell" are not sufficient to authorize the broker to enter into a contract of sale binding the owner. Bacon v. Davis, 9 Cal. App. 65, 98 P. 71.
Where a broker's contract of authority authorized him to negotiate for a sale of the lands in question at $5 per acre for thirty days, and the owners bound themselves to execute good conveyances to such purchasers as the broker might produce, on payment of the price, the term "negotiate" imported authority on the part of the broker to make a binding sale agreement and the contract therefore did not limit the authority to find a purchaser ready and able to pay the price. Comhes v. Adams, 63 S. E. 186; Comhes v. Stewart, 150 N. C. 64
An agent employed to sell real estate, and not authorized to execute a contract of sale or an instrument of conveyance, is only an agent to find a buyer. Manker v. Tough (Kan. Sup. '08), 98 P. 792.
Where before the time limited for selling the property expired, the broker requested an extension of time, which the principal refused, the fact that in doing so he stated to the broker that he hoped that he would sell the property, and that he would be glad to assist him, did not confer an authority upon the broker to sell the property after the expiration of the time limited. La Force v. Wash. Univ., 106 Mo. App. 517, 81 S. W. 209.
Under the Code defining "sell" as a contract by which one engages for a price to transfer to another a certain thing, etc., an instrument executed by an owner employing a broker to procure a purchaser of real estate, which recites that in consideration of the services of the broker the owner authorizes him "to sell for me, in my name, and receipt for deposit thereon," for a specified time, the property described, for a price fixed, and agrees to "sell and convey by a good . . . grant," etc., gives the broker authority to contract for the sale to a purchaser procured by him. Bacon v. Davis, 9 Cal. App. 65, 98 P. 71.
Where a broker's contract of authority authorized him to negotiate for a sale of the land in question at $5 per acre for thirty days, and the owners bound themselves to execute good conveyances to such purchasers as the brokers might produce, on payment of the price, the term "negotiate" imported authority on the part of the brokers to make a binding contract of sale, and the contract did not therefore limit their authority to finding a purchaser ready, able and willing to pay the price. Combes v. Adams, 150 N. C. 64, 63 S. E. 186.
An agency to sell land confers authority to sell only for cash, and the agent who produces a buyer on different terms is not entitled to any commission. Dreyfus v. Richardson, 130 P. 161, 20 Cal. App. 800; Anderson & Rowley v. Howard, 155 N. W. 261, 175 Iowa, 4.
A broker, in the absence of special authority, can not bind his principal, the seller, to send a deed to a certain bank for delivery, or agree that payment shall be made there and not at the principal's residence. Id.
Plaintiff's rights under a contract to purchase land from defendant were unaffected by defendant's brokers' act in agreeing to sell to a third person, where they were not authorized to sell; defendant did not ratify their agreement, and was not estopped to deny their authority before plaintiffs communicated their acceptance of defendant's offer. Wilson v. White, 119 P. 895, 161 Cal. 453.
Parties who deal with a real estate broker with knowledge he was selling lands as agent for the owner were under duty to ascertain the nature and extent of the broker's authority, and whether -he had been empowered to contract in writing for the sale of lands. Crumpacker v. Jeffry, 115 N. E. 62, - Ind. App. - .
A broker selling realty has no authority to make representations which confer easements on a purchaser not granted by the contract. Phillips v. West Rockaway Land Company, 163 N. Y. Supp. 993, 177 App. Div. 260. Where defendant authorized a broker to sell, he could not bind defendant to sell in the absence of specific authorization in writing. Stark v. Rogers, 169 P. 146, - Colo. Sup. - .
A broker authorized to sell land and required to complete a sale before a certain date, and whose contract with the purchaser required the latter to deliver notes and mortgages within thirty days after delivery of abstracts of title to him, which was later than the date fixed, did not conform to the broker's authority within Park's Ann. Civil Code, sec. 3587. Huson v. Dawson Naval Stores & Lumber Co., 98 S. E. 186, - Ga. App. - . An agent's authority to sell real estate must be specific, and is generally closely construed, and the purchaser must know that the seller is acting as agent and not as principal, and must become aware of the agent's authority, and where limited to sell at a fixed price per acre, the purchaser must know that the agent is without authority to make a contract for sale giving the purchaser an unreasonable time to consummate the deal. McFadden v. Crisler, 213 S. W. 912, - Tenn. Sup. - .
Where an agent to sell land had authority from the purchaser procured by him to sign the contract for such purchaser, the president of the seller corporation could make no valid objection to consummating the deal on the ground of lack of authority of the agent to sell to sign for the purchaser. Wales-Riggs Plantations v. Pumphrey, 217 S. W. 783, - Ark. Sup. - .
Where a real estate agent fixed the selling price of land, and gave it to a sub-agent to be given to possible purchasers, it was within the scope of the sub-agent's employment to represent that this was the lowest price the owner would take. Pistes v. Crosby, 177 N. W. 512, - Wis. Sup. - . Where a broker's contract is silent as to the terms of payment, the broker's authority is impliedly limited to the making of a cash sale. Shuck v. Conway, 179 N. W. 434, - Iowa Sup. - .
 
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agent, real estate agency, brokerage, commissions, compensation, contracts, duties, exchanges, exclusive contracts, forms, interpretations, judicial constructions, leases, liabilities of principal, listing, loans, options, contracts, pleadings, practice, law, rights, sales
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