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.
and instrument set aside. A guardian, by fraudulent proceedings in court, obtained an order and sold property inherited by his ward, and his vendee, who participated in the fraud, afterwards mortgaged the property to secure a large loan; the mortgage was made through a broker, and the mortgagee testified that the broker was defendant's agent for the service of process and for no other purpose, and that defendant dealt with him as with other brokers; the broker passed on the value of the securities, fixed the terms of the loans, subject to the mortgagee's approval, looked after the titles, employed attorneys to examine the same, received the money and paid it to the mortgagors, and in letters to the mortgagee spoke of the loans as made "by us;" in negotiating the loan in question he was associated with a third person, and attorneys were employed by them who knew of such fraudulent probate proceedings, and that the proceedings were made for the purpose of showing a clear title to the mortgaged property. Held, sufficient to show that the broker was the agent of the mortgagee so as to make notice of the fraud to him sufficient notice to the mortgagee to prevent the defense of good faith by it to an action by the ward to set aside such sale and mortgage as fraudulent. Dormitzer v. German Sav. & Loan Soc., 23 Wash. 132, 62 P. 862; Vercruyse v. Williams, 112 Fed. 206, 50 C. C. A. 486.
 
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