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Free Books / Real Estate / American Law Of Real Estate Agency / | ![]() |
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Authority Conferred On Real Estate Brokers And Agents. Part 2 |
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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.
A sale by a broker at $1,500, one month after he said he could not sell at that price and asked for lower terms was without authority. Matthews v. Sowle, 12 Neb. 398. Abbreviations used in the authority to an agent, easily understood by those familiar with land titles, did not make the authority void for uncertainty. Meline v. Ruffino, 129 Cal. 514, 62 P. 93. A letter to an agent to sell real estate, the buyer to pay the commissions, is sufficient authority to sell on the terms stated. Weaver v. Snively, 73 Neb. 35, 102 N. W. 77. Proof of authority to make a loan does not give authority to collect the principal or interest. Ortmeier v. Ivory, 208 I11. 577, 70 N. E. 665. Ordinarily the authority of an agent terminates on the death of the principal. Kyle v. Gaff, 105 Mo. App. 672, 78 S. W. 1047. A real estate agent is bound by the precise terms of his contract, and the principal is not bound by departures therefrom. Balkene v. Searle, 116 Iowa, 374, 89 N. W. 1087; Campbell v. Chase (Kan. Sup. '08), 96 P. 949; In re Fairmount Cab Co. (Com. Pl.), 9 Pa. Co. Ct. R. 201; Hagler v. Ferguson (Tex. Civ. App. '08), 111 S. W. 673; Jones v. Balleday, 2 App. Cas. (D. C.) 279. A contract, in writing, was held to be insufficient in failing to state the amount of the commissions to be paid to the broker. Zimmerman v. Zahender, 164 Ind. 466, 73 N. E. 920; Foote v. Bobbins, 50 Wash. 277, 97 P. 103.
In New York a contract to sell real estate signed by a son, by direction of the father, was held insufficient to confer authority upon the broker. Cohen v. Boccuzzio, 86 N. Y. S. 187, 42 Misc. 544. Compare Sec. 74. A contract of sale made by an agent in excess of his authority is not binding on his principal. Strong v. Boss, 33 Ind. App. 586, 71 N. E. 918; Staten v. Hammer, 121 Iowa, 499, 96 N. W. 964; Fleming v. Burke, 122 Iowa, 433, 98 N. W. 288; Hagler v. Ferguson (Tex. Civ. App. '08), 111 S. W. 673.
A broker has no implied authority to bind the principal by signing a contract of sale, nor to fix the terms, nor materially to change the terms without the principal's consent. Sullivamt v. Jahren, 71 Kan. 127, 79 P. 1071; Larson v. O'Hara, 107 N. W. 821, 98 Minn. 71; Hardizer v. Columbia, 50 Wash. 405, 97 P. 790; Hutchins v. Westheimer, 51 Wash. 539, 99 P. 577. An agent in whose hands lands are placed for sale, is not thereby authorized to sign a contract of sale. Jones v. Howard, 234 I11. 404, 84 N. E. 1041; Rowland v. Hall, 106 N. Y. S. 55, 121 App. Div. 459; Keim v. O'Reilly, 54 N. J. Eq. 418, 34 A. 1073; Stengel v. Sergeant (N. J. Eq.), '08, 68 A. 1106; Ettinger v. Weath-erhead, 29 Ohio Cir. Ct. R. 137; Gault Lumber Co. v. Pyles
(Okla. Supreme '07), 92 P. 175; Colvin v. Blanchard (Texas Supreme '07), 106 S. W. 323; Watson v. Milliken, 27 App. (D. C.) 500; Syllisin v. Hanson, 48 Wash. 608, 94 P. 187; Flyal v. Bowling (Or. Sup. '09), 102 P. 178; Light v. Daggett (S. D. Sup. '09), 121 N. W. 862; Lawson v. King (Wash. Sup. '09), 104 P. 1118.
A broker to sell lands has no authority to collect or to receive the purchase price; and a purchaser who pays him, without asking for his written authority, does so at his risk. Halsell v. Ren-frow, 14 Okla. 674, 78 P. 118, aff'd 202 U. S. 287; Edwards v. Kilgore, 68 S. 888, 192 Ala. 343; Spanagle v. Maple Grove Land & Live Stock Co., 177 N. W. 164, - Neb. Sup. -; Feitz v. Goet-tler, 181 N. Y. Supp. 956. Compare Yerby v. Grigsby, 9 Leigh (Va.), 387. Authority to a broker to sell and bind the owner by a contract must be certain and specific as to terms and description. Gault Lumber Co. v. Pyles (Okla. Supreme '07), 92 P. 175. Authority to sell land for cash and on long time did not authorize the broker to make the notes for deferred payments payable on or before certain dates. Colvin v. Blanchard (Tex. Civ. App. '07), 106 S. W. 323. Authority, in writing, to sell for $19,000, to net the owner 18,000, was held to authorize the agent to execute a contract of sale. Id. A broker authorized to sell for $8,000, 3,000 cash, is entitled to commissions on finding one willing to pay cash on delivery of the deed. Goss v. Broom, 31 Minn. 484.
In the absence of special authority a broker has no power to conclude a contract for the purchase and sale of lands. Hamilton v. Cutis, 6 Mackey (D. C.), 208; Ryan v. McGee, 2 Mackey (D. C.), 17; Coleman v. Garrigue, 17 Barber (N. Y.), 60; Hal-sey v. Monterio, 92 Va. 581, 24 S. E. 258; McCullough v. Hitchcock, 71 Conn. 401, 42 A. 81; Campbell v. Galloway, 148 Ind. 440, 47 N. E. 818; Balkeme v. Searles, 116 Iowa, 374, 89 N. W. 1087; Dickman v. Updike (N. J. Err. & App. '01), 49 A. 712; Armstrong v. Lowe, 76 Cal. 616, 18 P. 758; Jones v. Halla-day, 2 App. Cas. (D. C.) 277; Mannix v. Hildreth, 2 App. Cas. (D. C.) 259; Roach v. Coe, 1 E. D. Smith (N. Y.), 175: Brand-rup v. Britton, 11 N. D. 376, 92 N. W. 453; Carstens v. Mc-Reavy, 1 Wash. 359 25 P. 471; Keim v. Lindley, 54 N. J. Eq. 418, 30 A. 1063; Lee v. Lloyd, 181 N. Y. Supp. 295.
A real estate broker employed to find a purchaser is not authorized to execute a contract of sale in behalf of his principal; his authority is limited to the power of finding a purchaser satisfactory to the principal, where there is no stipulation, express or implied, to the contrary. Butenberg v. Main, 47 Cal. 213; Bundle v. Cutting, 18 Colo. 337, 32 P. 994; Malone v. McCullough, 15 Colo. 460, 24 P. 1040; Johnson v. Dodge, 17 I11. 433; Gilbert v. Baxter, 71 Iowa, 327, 32 N. W. 364; Stillman v. Fitzgerald, 37 Minn. 186, 33 N. W. 564; Scull v. Brontim, 55 N. J. Eq. 489, 37 A. 740; O'Beilly v. Keim, 54 N. J. Eq. 418, 34 A. 1073; Edwards v. Davidson (Tex. Civ. App. '04), 79 S. W. 48; Kramer v. Blair, 88 Va. 456, 13 S. E. 914; Davis v. Gordon, 87 Va. 559, 13 S. E. 35; Cox v. Chalfant, 181 P. 548, - Kan. Sup. -; Slater v. Bauer, 185 P. 864, - Cal. App. -; Wiggam v. Shouse, 185 P. 896, - Kan. Sup. - .
"While it is true that the power to sign the name of the principal may be given verbally, the words used for the purpose should be distinct and clear in their meaning and import, and should, with the requisite degree of certainty, manifest the intention of the principal to do something more than merely to employ a broker. Duffy v. Hobson,, 40 Cal. 240.
 
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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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