Sec. 289. For a receipt for deposit paid by the purchaser on account of land sold him, use Form No. 2 or Form No. 3, page 37, Text Book; for a sale made by the agent, in behalf of the owner, use Form No. 90; for an agreement of sale of land in a city, or for city lots, use Form No. 5, with modifications as to restrictions, etc., to suit the case; for an option, containing full terms, and giving exclusive right of purchase for a certain length of time, use Form No. 112.
Sec. 290. For an agreement of sale, which is a continuing option, requiring the buyer to be very prompt in his payments, the seller extending the time from month to month as such payments are made, use Form No. 7.
Sec. 291. It is always best to have all such agreements made in duplicate or triplicate, and, except as to options, all such agreements should be signed by each party, and each party should retain one copy of the agreement. The broker also should keep a copy for his files.
Sec. 292. In this connection, let the student read carefully Sections 61 to 79, both inclusive, commencing on page 31 of Text Book.
Sec. 293. Also Sections 80 to 93, inclusive, commencing on page 48 of Text Book, subject "Deeds," and particularly the "Analysis of a Deed," and comments thereon, pages 54 to 63. Also the subject of "Mortgages," Sections 93 to 108, both inclusive, commencing on page 75 of Text Book.
Sec. 294. See Text Book, Section 92, page 59, as to where to get description of property for writing up deed or mortgage; and Section 104, page 78, for clause to be inserted in "Purchase Money Mortgage;" and Section 103, page 78, for wording of clause conferring right to pay off note by paying bonus of interest; see "Conditions," page 56, for wording to be inserted in deed where premises are to be conveyed subject to a mortgage which is to be assumed by purchaser.
Sec. 295. The following are the forms for which the student and practicing real estate man will have the most frequent use, and they are enumerated here for the sake of convenient reference.
(a) Assignments: Separate instrument, No. 8, page 44; to be annexed to instrument, No. 9, page 45; to be endorsed on instrument, No. 10, page 45; of a lease, No. 66, page 162; of a mortgage, No. 32, page 87.
(b) Contracts: Brief memorandum of sale, No. 2, page 37; more complete memorandum of sale, No. 3, page 37; formal memorandum where abstract is to be furnished and examined by attorney or purchaser, No. 4, page 38; contract for sale of land, providing for partial payments, for building restrictions, and for execution and delivery of deed, and delivery of certificate of title upon full payment being made within the time limited, No. 5, page 40; agent's agreement of sale, No. 90, page 198; owner's agreement with agent, No. 89, page 197; builder's contract, very full and complete, No. 49, page 122; contract for drilling oil wells, giving full details, No. 65, page 157; party-wall agreement, frequently used, but not to be found in many works on real estate, No. 83, page 174; contract appointing agents to subdivide and sell property, very frequently used, and going fully into details, but seldom met with, No. 87, page 183; declaration of trust in respect to property conveyed in trust for the purpose of being subdivided and sold, No. 88, page 187; bill of sale, No. 91, page 199; contract of conditional sale, or a sale which is apparently a lease, No. 92, page 199; contract to extend mortgage and increase rate of interest, No. 36, page 94; chattel mortgage,. No. 14; crop mortgage, Form No. 142; contracts of exchange,, Nos. 109, no and in; special clauses in lease, Forms 143 to 153, inclusive.
(c) Deeds: Analysis of a deed, showing the several orderly parts, No. 13, page 55. The student should give this form careful study, and should read over carefully, several times, the comments thereon, pages 58 to 63, inclusive. In drawing a quitclaim deed, refer to No. 14, page 63; a deed of gift from husband to wife, No. 15, page 63; a deed to mining lands or mining rights, No. 16, page 64; a deed from several grantors to County for right of way for road, No. 17, page 65; a deed of right of way for a pipe line to terminate six months after non-user, No. 84, 177; of agricultural rights by a corporation, and reserving the mineral rights, thus creating two estates in the land, No. 18, page 66; this form shows also certified copy of resolution of Board of Directors authorizing the officers of the corporation to execute the deed, such resolution being prefixed to, and to be recorded as a part of the deed; of a deed from individuals to a corporation, conveying the minerals, and rights, privileges and easements necessary for extraction and removal of same, the agricultural rights being reserved, and the acquisition of the mineral rights by the corporation being ratified by the holders of more than two-thirds of its issued and outstanding stock, such ratification, in some of the states, being necessary to the validity of the deed, No. 19, page 68; of a deed of trust to secure a note, called "Trust Deed," No. 34, page 90; of reconveyance of trust property, No. 35, page 93.
Sec. 296. Ground rent leases, where the law permits of their being made for from thirty to fifty years, are popular at present in large cities. The owner of the ground prefers to retain the title and await the increase in value which will come by lapse of time, rather than to sell. The lessee, on the other hand, rather than to buy at prevailing high prices, prefers to take a long-time lease, upon such terms as will enable him to calculate a fair margin of profit after paying the ground rent, cost of improvements and maintenance. A broker will find it greatly to his advantage, where parties wish to enter into a contract or lease, in regard to which there must be more or less negotiation pro and con before the final terms are all embodied, to submit an outline or synopsis along the lines desired by his client and containing also such other provisions as ordinarily go into a document of the kind. He will find that this will not only facilitate the negotiations, but will come in the nature of a surprise to his client, who will compliment him on his tact and knowledge. A long-time ground-rent lease is one of the most difficult of instruments to draft, as there are so many contingencies to be provided for, and a first-class attorney would charge at least five hundred dollars for drawing a lease such as that here outlined. Leases of this kind are made in two ways: (1) Where the improvements to be erected by the lessee are only nominal in value, provision is made that all such buildings, structures and improvements shall be and become the property of the lessor, and no compensation therefor shall be due, allowed or paid therefor to the lessee. (2) Where the improvements are extraordinary, as in the case of a hotel or business block, provision is made for the appraisal of the improvements at the end of the term, as provided in Form No. 146. To indicate what such a lease should contain, the following outline is given: