This letter

"Dear Sir: I beg leave to inform you that I have this day sold the lot and improvements known as the Golden Gate Flour Mill Property for the sum of forty-one thousand dollars, less one thousand dollars commission, and have given purchaser twenty days to examine title to same. Please send me abstract and approval of sale, and oblige." was returned by Brown with this endorsement: "I herewith approve above sale. The Bank of California. Thomas Brown." Keating refused to complete the sale, on account of a defect in the title. Keating was financially able to pay the price he orally agreed to pay for the land, but he signed no contract which bound him to complete the purchase in case the title to the land was perfect, and Gunn did not introduce him to Brown, or inform Brown who was the purchaser referred to in his letter, and Brown did not learn the intended purchaser's name until about the time the title was rejected by Keating's attorney. In the suit brought by Gunn for the $1,000 commission, the Supreme Court held that, as Keating had not signed any contract, and had not been produced before Brown as the purchaser, Gunn had not "found a purchaser," as the law reads, and was not entitled to the commissions. And the Supreme Court, in its decision of the case, said: "The question here is, What is 'finding' or 'producing' a purchaser within the meaning of the law? Is it sufficient for a broker to merely find a person financially able, and who verbally agrees with him to purchase upon the terms of the vendor, and makes a deposit, but who neither signs a binding agreement to purchase upon the terms of the vendor, nor is produced before the vendor as a person ready and willing to enter into such a contract? It seems to us very clear that this question must be answered in the negative. The contract of the broker is to negotiate a sale, that is, to procure a valid contract to purchase, which can be enforced by the vendor if his title is perfect; or if he does not procure such contract, to bring the vendor and the proposed purchaser together, that the vendor may secure such a contract, unless he is willing to trust to an oral agreement. This contract on the part of the broker is complete, when he

delivers or tenders to the owner a valid written contract, containing the terms of sale agreed on, signed by a party able to comply therewith, or able to answer in damages if he should fail to perform. This is all the agent can do, and when it is done he is entitled to his commissions. But the necessity of a written contract of sale may be rendered unnecessary if the agent bring the vendor and vendee together, and the latter is able and willing, and offers to complete the contract, provided the vendor will make the conveyance. In such a case the agent has done all that he can do, and if the vendor under such circumstances refuses to complete the sale, he nevertheless will be compelled to pay the agent his commissions. The object of the vendor is to effect a sale of his property, and when the real estate broker produces a contract executed by a solvent purchaser, he is then entitled to pay for his services, whether the trade is finally consummated or not, because if the vendee refuses to take the property, the vendor holds the contract, which renders the vendee liable for all damages (including commissions paid by the vendor to the broker) for a failure to comply. The right of Gunn to the agreed compensation depends upon the performance of his contract to procure a purchaser, and as he did not do this, and defendant neither waived nor prevented such performance, he has not earned his commission." (Decided by the Supreme Court of California in the case of Gunn vs. Bank of California, reported in Volume 99, California Reports, page 349.)

Section 177.. WHEN OWNER MUST RETURN MONEY PAID ON CONTRACT.- A vendor under contract for the sale of land, who has received a part of the purchase price at the time of the execution of the contract, cannot rescind the contract on account of the non-payment of the balance of the purchase price on the day stipulated for in the agreement, without returning or offering to return to the vendee the money that he has received on account of the contract. When a contract of sale and purchase of lands is abandoned or rescinded by the parties, the vendee, though

in default, may recover back installments of the purchasemoney paid, less the actual damage to the vendor occasioned by his breach of the contract.

Section 178.-AGREEMENT BETWEEN AGENTS TO CO-OPERATE IN SELLING.-Real estate agents may co-operate in the selling of land, for a share of the commissions, and such agreement between themselves need not be in writing. The agreement will be sufficient, if made orally, and the courts will enforce it. An agreement between brokers, to co-operate in making sales of real estate, and to share the commissions, is not required by law to be in writing. The authority from the owner to sell must be in writing, but the agreement between the brokers to co-operate in making the sale may be made verbally. (Decided by the District Court of Appeals of California, in the case of Saunders vs. Yoakum, which decision is printed in Volume X of the California Appellate Decisions, page 243.)

Section 179.-AUTHORITY TO SELL ON CREDIT. -When a real estate agent receives authority from the owner to sell land on credit, the time of credit specified in their agreement is the measure of the agent's authority. Where the agreement authorizes the agent to sell on credit, but does not specify the time of credit, the agent must use his discretion in the matter, and has authority to give the purchaser a reasonable credit; and the credit given, to be reasonable, must be such as is usual and customary on sales of real estate in the particular vicinity. There is no set rule as to what will be considered a reasonable credit, but the question must be determined from all the circumstances in each particular case.

Section 180.-POWER OF ATTORNEY TO AGENT TO MAKE DEED.-The question as to what is necessary in a power of attorney for the sale of land, to authorize the agent to execute and deliver a deed to the purchaser, must

be determined in each case upon its own peculiar circumstances. As between the parties to the transaction, it is proper to consider their situation at the time of the execution of the power of attorney, and their intention is to be gathered from the words of the instrument, and all the circumstances under which it was written. A power of attorney for the sale of land is sufficient as between the parties to the transaction, whether properly acknowledged or recorded, or not, if it is otherwise valid.

Section 181.-RISK OF PURCHASER WHO TAKES LAWYER'S ADVICE AS TO TITLE.-A purchaser of land is not justified in refusing to accept a conveyance, and in demanding back a deposit paid by him on account of purchase-money, merely because of the opinion of his lawyer, though given in good faith, that the title is not safe, if the opinion is erroneous, and the record title is in fact perfect. The purchaser must take the risk of the soundness of the advice upon which he acts.

Section 182.-LIABILITY OF AUCTIONEER FOR DEPOSIT AT AUCTION SALE.-Although by the terms of an auction sale a deposit of a percentage of the cash payment with the auctioneer pending the examination of the title, which is warranted perfect, makes the auctioneer a stakeholder for the parties; yet when the title is shown to be perfect, the deposit then becomes, according to the terms of the sale, a portion of the cash payment, and the property of the owner of the land, less the charges and commisions of the auctioneer; and the auctioneer cannot thereafter return it to the purchaser except at his own risk.

Section 183.-AGENT'S KNOWLEDGE OF TITLE. -A real estate agent has nothing to do with the title or ownership of the property, and his knowledge as to the title, or the equitable estate of a third person therein, is of no consequence; and his right to the compensation contracted

for does not in any way depend on the validity or invalidity of the owner's title to the property.

Section 184.-INTEREST ALLOWED BY LAW ON AGENT'S COMMISSIONS.-A demand for broker's commissions, which is capable of being made certain by computation, draws interest from the time when it became due.

Civil Code, Section 3287.

Section 185.-HOW AUTHORITY OF AGENT CAN BE EXTENDED.-When the term of a real estate agent's employment is about to expire, the authority of the agent cannot be extended by a verbal agreement. The extension of the term of his employment, like the original agreement, must be in writing.

Section 186. — COSTS IN SUIT FOR COMMISSIONS. Where a real estate agent sues in the Superior Court for commissions, he will have to pay the costs of the court Clerk's fees, Sheriff's fees, Reporter's fees, jury fees -if the verdict in his favor be for less than $300. In other words, the agent must secure a judgment for at least $300, or he will not be entitled to costs. If the agent sues in the Justice Court, for less than $300, the judgment in his favor will carry the costs.

Code of Civil Procedure, Section 1022.

Section 187.-COMMISSIONS OUT OF PURCHASEMONEY.-Where the agreement between the owner and the agent is, that the agent is to receive his commissions "out of the purchase-money," or "out of the first money received" on the sale, the agent will not be entitled to any commisisons at all, if the sale does not go through. Under such a contract, the sale must be completed, and the money paid by the vendee, before the agent is entitled to commissions.