In this connection study Section 127, pages 134 and 135, of the Text Book.

Section 297. RENTING. All persons who are qualified to hold real estate and who labor under no disability, may make a lease. A tenant for life can make a lease only to the extent of his interest. Joint tenants and tenants in common may make leases jointly and severally. When joint tenants join in a lease, it is only one lease, as they have only one estate.

Sec. 298. Every lease should be in writing, and should specify:

(a) The date on which the tenancy is to commence;

(b) How long the tenancy is to continue;

(c) The days whereon, and the place where, the rent is payable;

(d) Conditions which the landlord may deem necessary to protect his interests, such as that the tenant shall not sell liquor on the premises, nor conduct a disorderly house, etc.;

(e) And should provide that upon the failure of the tenant to pay the rent, or upon his violation of any of the covenants of the lease, the landlord may terminate the lease, re-enter and oust the tenant.

See Form No. 60 which contains covenants well adapted to the leasing of a dwelling house. Also, synopsis of a Ground Rent lease, Sec. 296.

Sec. 299. Any personal property belonging to the landlord, and left on the premises for the use of the tenant, should be listed item by item, in a separate paper, be headed "Exhibit A," and be attached to the lease, and be referred to as such in the lease.

Sec. 300. If the tenant intends to add anything in the way of fixtures to the landlord's premises, he should be given the privilege to do so in the lease, together with the right to remove such fixtures while entitled to possession or within a reasonable time thereafter. If the tenant does not exercise his privilege to remove his fixtures before his lease expires, he cannot lawfully do so afterwards, unless provision therefor is made in the lease, as the right to re-possess the land, and also the fixtures as a part of the land, vests immediately in the landlord.

Sec. 301. Firms and corporations who carry on the renting of houses and other buildings on an extensive scale, have the matter of giving out lists of such houses or buildings to intending renters reduced to a system. The forms in use by Wright & Callender Company, one of the largest real estate and rental concerns in Los Angeles, for the rental of houses, are shown in numbers 123 to 125 inclusive. The use of forms such as these puts inquirers on their honor, and enables the agent to secure his hard-earned commission, and prevents the dishonest and slippery renter from getting a foothold before he has paid his rent. The rental and the selling branches of the real estate business go well together, although the former is less remunerative and involves more detail than the latter. It sometimes happens that a would-be renter cannot find a residence to suit him, and he then is in a mood to buy - particularly after he has looked in vain for a week for a suitable house to rent.

Sec. 302. The mutual obligations of the lessor and lessee under a lease are fixed almost entirely by the covenants of the lease. Covenants in a lease to make repairs, to pay rent, to cultivate land in a certain manner, for quiet enjoyment of the premises, and all implied covenants, run with the land. If a lessor assigns the remainder of a term of a lease, his lessee is liable on the covenants running with the land. If the assignment is for a shorter term than the remainder of the term of the original lease, even by one day, the transfer is not an assignment, but is a subease, and in such case the sub-lessee is liable to the lessee and not to the original landlord.

Sec. 303. A good many landlords object to children, and a prominent real estate broker in speaking on this subject, said: "The children of today are not brought up as they should be. Discipline is not taught and applied as in the old days. In my boyhood days, discipline meant respect to your elders, subordination to authority and education in morals and manners as well as in schooling. It also meant punishment for errors committed as a preventive for the future. At the present time, parents seem to think their children can do no wrong and consequently are not reprimanded or corrected. The result is that many of the children of today are nuisances and objectionable in many ways, especially to owners of real estate, whose property is disfigured or destroyed by these young free lances. The old proverb, 'spare the rod and spoil the child,' is just as good now as when it was written. Owners and agents, if they draw strict rules against children, cannot be blamed, as they have suffered from children's misdeeds and lack of discipline and have to safeguard themselves against further troubles and losses."

Sec. 304. An agent should familiarize himself with the laws of his State in respect to giving tenants notice to quit within the time prescribed by law.

Sec. 305. INSURING. In this connection, study Section 122, page 101, of Text Book. A broker should endeavor to secure an agency for underwriting fire insurance in some of the well-known companies. Boards of insurance underwriters govern the placing of fire insurance in large cities and real estate brokers doing business in an ordinary way oftentimes place insurance for their clients through insurance agents who make a specialty of insurance. The broker should call the attention of all of his friends and acquaintances to the fact that he places insurance and request that they favor him when in need of insurance.

Sec. 306. A veteran underwriter recommends that the amateur agent study the copy of the printed form of a policy of fire insurance, as that contains the law of the contract. Any and all persons who carefully read, study and follow the wording of the policy cannot make an error that will void the contract. In all insurance policies the words "where," "when" and "how" must be kept in view. Applying each of these words in its proper place will enable anyone of ordinary education to write up a proper contract of fire insurance. The tendency among agents in making up policy forms is to enumerate every class of goods that might come under the head of the item intended to be described. This frequently leads to results not intended. In a recent case, the Court held that a policy covering "stock of family groceries, cases, lamps, scales and other merchandise for sale," covered cases, lamps and scales not for sale, and in another case the policy covered" lumber piled in mill building, on cars, under mill sheds, and in sheds adjoining to said mill building." The court held that lumber sheds from 75 feet to 200 feet distant were "mill sheds" as described in the policy. The following are recommended as suitable forms for the several classes of property named:

Dwelling and Contents.

$.......On the.......story.......building, including sidewalks, awnings and all fixtures and appurtenances attached thereto and being part thereof, while occupied only as a family dwelling-house, situate........and $.......On all furniture and household personal effects of the insured, his family and servants, not prohibited and or excepted in the printed conditions of this policy, while contained in above described dwelling-house.

Mercantile Building and Stock Form. $.......On the.......story.......building, including sidewalks, awnings and all fixtures and appurtenances attached thereto and being a part thereof, while occupied for mercantile purposes only, situate........

$.......On all furniture, trade fixtures, supplies for store and office use, tools, machines and appurtenances used in the business, not kept for sale, and not excepted in the printed portion of this policy.

$.......On all merchandise of every description kept for sale, and not excepted in the printed conditions of this policy, consisting principally of.......all and only while contained in the above described building and on and under its sidewalks.

Manufacturing Plant.

$.......On the.......story.......building, including open platforms and open scales adjoining, and all fixtures and appurtenances attached thereto and being a part thereof, other than manufacturing fixtures and appurtenances, while occupied as a......power flour mill.

$.......On all machinery, tools, implements, furniture, apparatus, mill and office supplies not kept for sale and not prohibited and/or excepted in the printed portion of this policy, and all fixtures and appurtenances directly connected with flour handling and manufacturing, except boilers and connections and the main power engines.

$.......On all boilers, piping to first joint, and all appurtenances attached thereto, and main power engines, fly wheels, and engine and fly wheel shafting to first connection.

Sec. 307. A mortgagee has an insurable interest, but it is not good underwriting for Company A to write $1,000 on the mortgagee interest and Company B to write $1,000 on the mortgaged property. In case of a $1,000 loss, A would pay the mortgagee and B would pay the owner. It is safer to write the policy in the name of the owner, with the loss, if any, payable to the mortgagee as his interest may appear. This rule also applies to insurable property sold on a contract for a deed, or where same is sold on the installment plan, and wherever there are two or more parties having equities in the same property.

Sec. 308. Leaving the blank for the amount of other or total insurance permitted unfilled is one of the worst features of underwriting, as it permits unlimited insurance without regard to the value of the property or the character of the insured.

Sec. 309. The permit for other insurance as usually written is not as clear as it seems on its face. It has been held by the courts that a policy for $2,500 with $2,500 total concurrent insurance permitted, allowed $2,500 additional, or $5,000 in all. The safest form is to write: "$2,500 total insurance permitted, including the amount of this policy."

Sec. 310. The broker should keep a correct record of each policy with full description of the property, date of policy, amount, and date when same expires and reduce the dates of expiration to a system so that such dates will be called to his attention almost automatically. Record books, especially designed for the recording of policies, are furnished by some of the insurance companies; and they also furnish all blanks that are required to be attached to policies, and blanks for reports to principal agency. A good many owners are careless in respect to renewing their insurance and rely on the agent to look after the matter for them, and if the agent fails in this regard, they think he has neglected their interests and feel aggrieved as well as alarmed that their property is not protected against loss. Besides, other agents are in the field and competition in the insurance line is keen. Vacancy permits, good for sixty days, usually form part of the policy on dwellings. Should any premises, under the charge of the agent, become vacant, he should see that a vacancy permit is attached to the policy of insurance, if no such permit is contained in the policy itself. Vacancy is regarded by insurance companies as a decided increase of hazard and agents are cautioned to be guarded in granting permits therefor. If the vacancy extends over sixty days, a two-thirds value clause permit is attached, specifying certain requirements as to the care of the property, and if these are not complied with the policy becomes void. Fire insurance underwriting, if vigorously pushed and properly looked after, is in itself a remunerative feature of the real estate broker's business.