This is a rather dangerous doctrine, both in law and in morals. It is undoubtedly true that, in a case where it is impractical for the purchaser to ascertain the exact facts with respect to value, upon investigation, or where these facts are peculiarly within the knowledge of the seller, or the seller prevents an adequate investigation by the purchaser, the latter can rescind the contract as the result of false representations on material points. Certainly, the better practice would seem to be to consider that any deliberate false representation by the seller as to value, or any representation as to value which he may make innocently but which is inaccurate and upon which he knows the purchaser relies, should be sufficient to enable the latter to rescind the deal.

In this connection a distinction must be drawn between representations which are merely expressions of the opinion of the seller and unqualified representations of fact by him. If he tells the purchaser that he considers the property worth $25,000, this is a matter merely of his opinion. It is incumbent on the purchaser to make his own investigations and to arrive at his own conclusion as to the accuracy of the value given. On the other hand, if the seller states that the property is worth $25,000 and is assessed for that amount, or that he has had a firm offer

of $25,000, or that it can be readily sold for that sum to others, the purchaser, if these representations are false, should be allowed to terminate his dealings with the seller and withdraw from the proposed purchase without any obligation to the seller.

Inasmuch as the real estate broker is the agent of the person who employs him, any material misrepresentations by him, whether made wilfully or innocently, will bind his principal so far as the right of the purchaser to rescind is concerned. If the broker, If the broker, therefore, employed by the seller, misrepresents to the purchaser any material facts, the purchaser can refuse to proceed further and can rescind his agreement to purchase. If the broker makes no misrepresentations, however, the fact that the seller becomes dissatisfied with the financial responsibility of the purchaser and refuses to proceed with the sale, after a preliminary understanding on all material facts has been entered into, will not defeat the right of the broker to his commission.

As is true in all other matters of contract in transactions involving real property, it is important that any agreements between the purchaser or the seller, and the broker, be reduced to writing. Where this is not done, the agree

ments may be void under laws providing that agreements with respect to real property must be reduced to writing or, with perfect good faith on the part of both the broker and his principal, the terms of the broker's employment may be in dispute and serious loss and misunderstanding result. A written memorandum, setting out the terms upon which he is to proceed, the limits of his authority, the conditions upon which the payment of his commission is to be predicated, and the like, will obviate any possible misunderstanding on these points and will protect employer and broker alike.

H

CHAPTER III

THE CONTRACT OF SALE

AVING decided upon the community and the site which you prefer, and negotiated the terms of sale, the next step is the contract of sale and taking title. In the majority of cases the purchaser signs the contract of sale in a somewhat summary and offhand manner. It is well to remember that this contract is the basis of the whole transaction. When it comes to the closing of title and the delivery of the deed, the contract of sale will control.

So long as the seller offers you a title in accordance with the contract of sale, he is doing all that you can legally ask him to do. If the contract of sale fails to provide for a warranty deed, you will not be able to insist upon receiving one. If it provides that the property is to be taken subject to certain restrictions or mortgages or other encumbrances, you will be forced to accept title accordingly. If it specifies a certain description of the land, this is the description

which the seller will be entitled to use in drafting the deed. If it specifies a certain apportionment of taxes or assessments or water charges, it will be necessary to apportion them as agreed. If it provides for the payment of a specified broker's commission, the parties will be bound to pay the commission in the amount and manner specified. If it provides for a purchase money mortgage without the right in the purchaser to make payments in reduction of the principal, before the maturity date, he will not be able to insist that the mortgage given on the closing contain such a clause.

All of the foregoing items and many more similar to them are of importance-some of vital importance to the purchaser. They affect the rights of the purchaser and the title which he receives. The important point to remember is that the purchaser cannot be too careful in entering into the contract for the sale and purchase of the land. It is usually a rather unimportant looking document. To one not initiated into the mysteries of real estate law, it may appear entirely harmless and unobjectionable, when in fact it contains clauses which directly affect the land to be conveyed and the title which the purchaser is to receive.

By statute, usually, a contract to convey real