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Free Books / Real Estate / American Law Of Real Estate Agency / | ![]() |
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Sec. 1113. Distinction Between The Rules Of Law Applicable To A Consummated And An Unconsummated Contract Of Sale |
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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 the agreement for the sale or exchange of real property has been consummated by an actual execution of a written contract therefor, in the absence of a stipulation to the contrary, the broker's commissions are earned when the contract is signed by the client, and a defect in the title becomes unimportant and constitutes no defense to the payment of commissions; but where it is sought to recover commissions for services rendered in attempting to effect a proposed exchange of real property, which was not carried out, no written contract having been signed between the parties to the exchange, it must be shown that the customer produced was the owner of the property offered for exchange, as well as that after the terms of the exchange had been agreed upon the client refused to carry them out. Mutchnick v. Davis, 114 N. Y. S. 997.
Defendant having denied that he ever agreed to exchange the property, the rule that objections to title and to completing a contract for the sale or exchange of real property not specified during the negotiations are deemed to have been waived does not apply. Id.
8ec. 1114. Construction of contract between brokers for commissions.
Plaintiffs agreed with defendant to assist him in procuring for sale on commission lands in H. County, and in making sales for defendant plaintiffs were to receive one dollar an acre on the land previously listed by defendant, and one-half of the commissions on the sale of any lands subsequently listed by either of the parties. Held, that, if either of the plaintiffs rendered any assistance in listing land that was subsequently sold by either plaintiffs or defendant, plaintiffs were entitled to compensation at the rate of one dollar per acre, if the land sold had been previously listed by defendant; otherwise, to one-half the commissions received on the sale. Judgment 19 S. D. 525, 104 N. W. 247 reversed on error. Dickinson v. Hahn (S. D. Sup. '09) 119 N. W. 1034.
 
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