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.
Agents to rent and care for land, not agents for the sale thereof; held, entitled to negotiate and purchase for themselves, though the owner did not know that they were the real purchasers. Fred Brown & Co. v. Cash, 145 N. W. 80, 165 Iowa, 221. Sec. 382. Broker required to refund commissions when he has acted in bad faith.
Where, after confirmation of sale, the owner pays to the broker the commissions agreed on, and afterwards discovers that the title to the land he has received in exchange is defective, and the representations made as to the situation and value are false. Held, before he can recover from such broker the commissions so paid for the exchange, he must further show that the broker acted in bad faith, and concealed from him information possessed by said broker in regard to the title, situation and value of the land. Lockwood v. Halsey, 41 Kan. 166, 21 P. 98; Volker v. Fisk (N. J. Ch. '09), 72 A. 1011. See also Sec. 323.
 
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