In this connection study first, Sees. 61 to 79 inclusive, 80 to 92 inclusive, and 126, and 129 to 133 inclusive, of the "Text Book."
Section 276. Whenever a broker is called upon to formulate an option, contract, deed or mortgage, as he naturally will be in the course of his business, he will be expected to do so with reasonable speed and correctness. In order to do this, it will be necessary for him to give some study beforehand to the matter.
Sec. 277. The broker should provide himself with the printed legal blanks ordinarily employed in making sales and transfers in his section, as these are the blanks with which persons resident in that vicinity are familiar. Printed blanks do not always fully meet the requirements of the law nor the intentions of the parties. Thus, the provision, usually to be found in an agreement of sale, that the vendor shall furnish a good and sufficient deed does not require him to furnish a marketable title. Should the broker not find printed blanks to meet his requirements, he is referred to the forms mentioned in this lesson.
Sec. 278. It is not the printed forms with which the broker will have the most difficulty, but with forms for which he has had no precedent. It frequently happens that parties desire to come to an agreement immediately in regard to something which can be completed only at a later date when certain other documents are in readiness or certain other acts have been performed. Forms Nos. 109, no and III are furnished as suggestion along this line.
Sec. 279. There are not a few persons, beginners in the real estate business among them, who do not know what sort of a paper to use for any particular purpose in connection with the conveyance and transfer of real and personal property, and the following information will be found helpful in this regard:
(a) SEPARATE ASSIGNMENTS are used for the transfer of the following named several properties: Accounts, homesteads, patents, bonds, contracts for the sale of real estate, copyrights, judgments of courts, leases, mortgages of either real or personal property, or of both real and personal property. Any instrument, except a deed, which has not been put of record, may be transferred by the indorsement of the assignment on the instrument itself. Where the assignment is made on an instrument which has been recorded, or if made on an instrument which has not been recorded but which the law requires or the interest of the parties demand that it shall be recorded, and where separate books are provided for each class of instruments, as a "Book of Leases" for the record of leases and a "Book of Assignments" for assignments, it is evident that the instrument and the assignment indorsed thereon would have to go of record in both books. In such a case, the proper course is to prepare a separate assignment. Where an instrument is not required to be recorded, as is the case with policies of insurance, certificates of stock, corporation bonds and promissory notes, the title to these may be transferred, so far as the parties to the transaction are concerned, by indorsement and delivery; but there being a third party interested in the case of corporate stocks and bonds and policies of insurance, further action is necessary; the assignment of the policy of insurance must be assented to by the agent of the company issuing same; the certificates of stock must be cancelled and new certificates issued by the corporation; and where corporate bonds have been registered, they must either be released from registry or transferred to the name of the new owner by the transfer agent.
(b) DEEDS are always used to convey the title acquired by deed; a separate assignment, an indorsement on a deed, or a bill of sale is not sufficient to pass title by deed. The party named in a deed as he to whom the property is conveyed, is called the grantee, and when such grantee makes another deed of the same property to another person he becomes the grantor.
(c) BILLS OF SALE are used to transfer the title of personal property; and these are frequently used by careful conveyances to transfer certificates of stock, and corporate bonds, in addition to indorsement and delivery, as they afford tangible written evidence of the transfer. They are used for the transfer of the title to all sorts of personal property, such as furniture, live stock, etc.
Sec. 280. A proposed purchaser will find it to his advantage to study the "Purchase Chart," Form No. 1, page 29, of Text Book, to put him on his guard against overlooking anything that should be mentioned while the negotiations are in progress, as a discussion by the parties of all the points involved, before entering into a contract, will save both time and trouble afterward. When there is a building and loan mortgage on a place, the purchaser should obtain a written statement from the agent of the company, showing exactly the amount still owing and the monthly payments, and how much thereof is applied to the principal, and how much on the interest. A borrower from a building and loan association is always a stockholder and usually there are transfer fees to be paid when the certificate of stock is transferred. These fees should be borne by the seller. In California, the taxes on personal property, where a person is the owner of both real and personal property, becomes a lien on the real property, and where the purchaser agrees to assume the taxes, particularly the first installment for the fiscal year, he should make a deduction for the tax on personal property, if ascertainable at the time; if not ascertainable, then he should have an agreement in writing from the seller that he will pay the personal property tax; or a sum sufficient to cover should be placed in the hands of a responsible third party until the taxes are ascertained and paid by the seller. Such taxes usually attach as a lien to the premises in which the seller resides.
Sec. 281. When an agreement is made for the sale, or few the mortgaging or leasing of property belonging to an estate, or to a minor or incompetent person, such agreement should be made with the executor, administrator or guardian, and contain a clause to the effect that the same shall be subject to the confirmation of the Court having charge of said matter.