Acquiring a Home

writing and may be implied or direct.-
Failure of owner to carry through sale
does not affect right of broker to commis-
sion where he has produced purchaser
ready to purchase at authorized price.-
Broker's compensation may be fixed by
agreement with his principal.-Any sug-
gestion for contract covering compensa-
tion.-No commission can be claimed
where deal fails through fault of broker.—
Option not tantamount to closing of the
deal.-Option does not become contract
until exercised.-Good faith required.-
Cannot act where he has personal interest
aside from commission, unless principal is
advised and agrees.-Cannot accept com-
mission from both seller and purchaser
without their consents.-Effect of false
representations by seller as to value.-
Deliberate or otherwise.-Expressions of
opinion by seller as distinguished from rep-
resentations by broker representing seller.-
Importance of written agreement.

III. THE CONTRACT OF Sale .

The contract is the basis of the whole

transaction.-Contract will control on clos-

ing of title.-Full consideration of terms

and care important.-Must usually be in

writing.-Effect of execution of contract

under seal varying the written contract

by parole evidence.-Collateral agreements

distinguished.-Importance of
of reducing

modifying or collateral agreements to writ-

ing executed with the same formality as

the sales contract. The acknowledgment

and recording of the contract.-Acknowl-

edgment by subscribing witness.-The de-

scription of the property to be conveyed.

-Description of metes and bounds.-Dan-

PAGE

CHAPTER

gers of description by reference to adjoin-

ing owners.-Desirability of basing de-

scription on survey.-Reference to prior

deed.-Provisions with respect to the terms

of sale. Mortgage provisions.-Right to

pay off mortgage prior to maturity.-

Cautions with respect to provisions that

property is conveyed subject to any speci-

fied conditions.-Effect of such provisions.

-Taking title subject to a mortgage and

assuming mortgage distinguished.-Re-

strictions and rights of way.-Apportion-

ment of taxes, insurance, water charges

and the like.-Method and desirability of

apportionment.-Adjustments with respect

to water, gas, sewer, electric charges and

telephone tolls.-Provisions with respect to

risk of loss by fire prior to closing.-

Should ordinarily be borne by the seller.-
Provision in contract with respect to
broker and his commission.-Provisions
with respect to special assessments.-
Agreement that purchaser's obligations
shall be subject to approval of the title by
title company.-Importance in general of
legal advice with respect to contract.

Auctions and installment purchases.-

Growth of modern land development plan.

-Benefits of such developments.-Dangers

and draw-backs.-Cautions with respect to

"blanket mortgages" and installment pay-

ments.-Importance of proper advice and

title insurance.-Danger of plan whereby

delivery of deed is held in abeyance pend-

ing payment in installments.-Purchase of

property under agreement that house will

be erected by seller in accordance with

agreed plan.-Advantages and disadvan-

tages of this method of purchase.-Public

auctions.-Advantages and disadvantages.

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CHAPTER

-Many developments characterized by
poor architecture and improper building
construction.-Importance of proper roads,
sidewalks and drains-their effect on spe-
cial assessments.

V. THE EXAMINATION OF THE TITLE.

Title examination peculiarly a legal prop-

osition. Methods of conducting exam-

ination through attorney or title company.

-Employment of title company by attor-

ney preferable.-Policy of title insurance

-its importance and protection.-The

selection of the title company. Securing

for the purchaser the benefit of the com-

mission given by title companies to attor-

neys.-Examination by title company in co-

operation with attorney and under his gen-